In the Solow growth model, increases in capital ______ output and ______ the amount of output used to replace depreciating capital.

Question

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According to the Solow growth model, increases in capital lead to increases in output as the production function creates a positive relationship between the two variables. However, as capital stock increases, the amount of output used to replace depreciating capital (i.e. depreciation) also increases. Therefore, both the capital and depreciation increase with the increase in capital.

In the Solow Growth Model, Increases in Capital ______ Output