Which of the Following Is NOT an Outcome of the Solow

question 56

Multiple Choice

Which of the following is NOT an outcome of the Solow growth model?

• A) When a greater proportion of output goes to investment, more growth will occur.
• B) Growth will be faster the further a country is below its steady-state level of capital stock.
• C) Capital accumulation alone will lead to zero long-run economic growth.
• D) All of these answers are correct.

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Definitions:

Quantity Demanded

The amount of a good or service that buyers are willing and able to purchase at a specific price.

Excess Demand

Excess demand occurs when the quantity demanded of a good or service at the current price exceeds the quantity supplied, often leading to upward pressure on prices.

Unregulated Market

A market where government agencies do not control or limit the behaviors of buyers and sellers, allowing the forces of supply and demand to freely set prices.

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, leading to a stable market condition.