In an economy with no population growth and no technological change, steady-state consumption is at its greatest possible level when the marginal product of:

Question

Quizplus · Accepted Answer

In the Solow growth model, steady-state consumption is maximized when the marginal product of capital equals the depreciation rate, as this condition ensures that the capital stock is at the Golden Rule level, where consumption per worker is maximized.

In an Economy with No Population Growth and No Technological