Steady State Growth Is When

question 23

Multiple Choice

Steady state growth is when:

• A)when the average product of capital, y/k, is unchanging as k increases at a constant rate.
• B)when the rate of growth of capital per worker is constant at zero.
• C)when the rate growth of output per worker is constant at zero.
• D)all of the above.

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Definitions:

Lemon

A product, often a used car, that is found to be defective only after it has been bought.

Corolla

The collective term for the petals of a flower, which are usually colored and serve to attract pollinators.

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A situation where asymmetric information results in high-risk individuals being more likely to engage in agreements, often observed in insurance markets.

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