In Solow's Model of Economic Growth,suppose That S Represents the Savings

question 59

Multiple Choice

In Solow's model of economic growth,suppose that s represents the savings rate,z represents total factor productivity,k represents the level of capital per worker,and f(k) represents the per-worker production function. Also suppose that n represents the population growth rate and d represents the depreciation rate of capital. The equilibrium level of capital per worker,k*,will satisfy the equation

• A) szf(k*) = (n + d)k*.
• B) szk* = (n + d)f(k*).
• C) nf(k*) = .
• D) f(k*) = k*.

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