According to the Solow growth model,advanced economies with large stocks of capital will:
A) eventually stop growing.
B) continue to grow at a constant rate.
C) always have levels of real gross domestic product (GDP) that are higher than the less advanced economies.
D) all converge to the same level of real GDP.
E) never reach a steady state.

Question

Quizplus · Accepted Answer

According to the Solow growth model, advanced economies with large stocks of capital will eventually stop growing because they will reach a steady state where the rate of capital accumulation is equal to the rate of depreciation.

According to the Solow Growth Model,advanced Economies with Large Stocks