An implication of the Solow model is that,once an economy reaches the steady state,
A)per capita consumption is constant.
B)per capita output is constant.
C)per capita capital is constant.
D)per capita consumption continues to grow.
E)a,b,and c are correct.

Question

Quizplus · Accepted Answer

In the Solow model, once an economy reaches the steady state, per capita consumption, per capita output, and per capita capital all remain constant. Thus, option E is correct as it includes all the correct statements.

An Implication of the Solow Model Is That,once an Economy