In the steady state,the per-capita capital stock does not change because investment equals:

Question

Quizplus · Accepted Answer

In the steady state, the per capita capital stock remains constant. This means that the amount of capital that is invested should be equal to the amount of capital that exits due to depreciation. Therefore, the correct choice is C, depreciation. Option A is incorrect, as it refers to the output per worker, which is not necessarily equal to investment. Option B is also incorrect, as the marginal product of capital is a measure of the additional output that is produced when an additional unit of capital is added. Option D is incorrect, as consumption refers to the use of goods and services for satisfying one's wants and needs, and is not directly related to the change in capital stock.

In the Steady State,the Per-Capita Capital Stock Does Not Change