In the Solow Model,if,in the Absence of Any Shocks,the Capital

question 79

Multiple Choice

In the Solow model,if,in the absence of any shocks,the capital stock remains at K* forever,this rest point is called the __________.

• A)saving rate
• B)short-run equilibrium
• C)steady state
• D)the rate of capital accumulation
• E)none of the above

---

Definitions:

Estimated Net Realizable Value

The estimated selling price of goods minus the costs of their completion and the costs required to make the sale.

Bad Debt Expense

Reflects the cost of accounts receivable that a company no longer believes it will collect, indicating the expected uncollectable amounts.

Sales Discount

Cash discount offered to encourage prompt payment of an account receivable.