If a country is currently to the left of its steady-state capital stock in the Solow model,growth in output will follow as a result of capital accumulation.

Question

Quizplus · Accepted Answer

According to the Solow model, when a country is to the left of its steady-state capital stock, it means that the country has the potential for capital accumulation. As a result, growth in output will follow through the accumulation of capital until the economy reaches its steady state. Therefore, the statement is true.

If a Country Is Currently to the Left of Its