Refer to the Following Figure When Answering the Following Questions

question 79

Multiple Choice

Refer to the following figure when answering the following questions.
Figure 5.1: Solow Diagram
-In Figure 5.1, if the economy begins with the initial capital stock at K₃, the capital stock will ________ and the economy will ________.

• A) increase; grow
• B) decrease; shrink
• C) stay constant; be in its steady state
• D) decrease; be in its steady state
• E) stay constant; shrink

---

Definitions:

Acceptance May Consist

Acceptance in a contract can take various forms, including actions or performance in line with the contract's terms.

Valid and Enforceable

Legally binding and capable of being executed or implemented under the law.

Voluntary Consent

Knowing and voluntary agreement to the terms of a contract. If voluntary consent is lacking, the contract will be voidable.

Same Bargain

The agreement or deal that was originally made or intended by the parties involved, without any alterations.