The neoclassical theory of growth identifier the steady state rate of growth as the ____ just sufficient to keep _____ constant while labor grows?
Correct answer: D. investment capital per person
- A. saving, investment
- B. capital per person, productivity
- C. labor growth, output
- D. investment capital per person
Explanation
In the neoclassical growth model, steady-state investment is just enough to equip the growing labour force while keeping capital per person constant. Thus the relevant pair is investment and capital per person.
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