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

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

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

▸ increases in the rate of physical capital accumulation can be the sole reason for sustained economic growth

▸ there is a maximum fixed level of GDP that an economy can achieve by increasing saving

▸ the physical capital stock does not play any role in the determination of the steady-state equilibrium level of GDP

▸ increases in the saving rate is the sole reason for sustained economic growth

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Macroeconomics

Edition: 3^rd

Authors: Acemoglu, Laibson, List

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