In the Solow model,defining
as the saving rate and
as output,consumption is given by
.

Name: In the Solow model,defining as the saving rate and as output,consumption is given by .
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Question

In the Solow model,defining  
as the saving rate and  
as output,consumption is given by  
.

Quizplus · Accepted Answer

In the Solow model, consumption is given by (1-s)*y, where s is the saving rate (proportion of output saved) and y is output. Therefore, the correct formula for consumption would be (1-11ea895d_4d54_1030_8397_37007e4c7551_TB4305_11)*11ea895d_4d54_1031_8397_1bcb8bcac20a_TB4305_11.

In the Solow Model,defining