If investment is greater than depreciation,an economy will be above its steady state.

Question

Quizplus · Accepted Answer

Investment being greater than depreciation indicates that the economy is adding to its capital stock, which can lead to growth, but it doesn't necessarily mean the economy is above its steady state. The steady state is a condition where the economy's capital stock remains constant over time, considering both investment and depreciation.

If Investment Is Greater Than Depreciation,an Economy Will Be Above