If we hold ideas,education,and labor constant in the Solow model,then output (GDP)is a function of:
A) human capital only.
B) physical capital only.
C) labor only.
D) technological knowledge only.

Question

Quizplus · Accepted Answer

Holding ideas, education, and labor constant in the Solow model means that the only factor affecting GDP is physical capital. In the basic Solow model, technological knowledge is also a factor, but it is not included in this scenario. Therefore, choice B is the correct answer.

If We Hold Ideas,education,and Labor Constant in the Solow Model,then