Question

^{In the Solow growth model, the steady-state occurs when:}

^{(a) capital per worker is constant}

^{(b) capital per worker is growing}

^{(c) capital per worker is falling}

^{(d) the saving rate = depreciation rate}

Answer 1

"D"

In the Solows growth model the steady state occurs when the saving cannot create any more investment or capital formation and it is equal to the depreciation in the economy.