According to the Solow Model,given the Levels of Total Efficiency

question 213

Multiple Choice

According to the Solow model,given the levels of total efficiency units of labor and technology,________.

• A) increases in the saving rate is the sole reason for sustained economic growth
• B) increases in the rate of physical capital accumulation can be the sole reason for sustained economic growth
• C) there is a maximum fixed level of GDP that an economy can achieve by increasing saving
• D) the physical capital stock does not play any role in the determination of the steady-state equilibrium level of GDP

---

Definitions:

Capitalist

An economic system in which private individuals rather than the state own and control property and businesses, operating for a profit.

Worker

An individual who performs tasks or labors for payment, contributing their skills and efforts to an organization or economy.

Soviet Version

Refers to the socialist economic model employed by the Soviet Union, characterized by state ownership and central planning.

Government Planning Committee

A body within the government responsible for setting goals, designing strategies, and overseeing the implementation of policies and plans.