Describe the steady state in the Solow growth model
What will be an ideal response?
In steady state in the Solow growth model, the economy is in equilibrium with the capital-labor ratio and real GDP per hour worked constant, but capital, labor, and real GDP are growing. The steady state is the long-run equilibrium, so an economy not at the steady state will move toward it.
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The loss of total market share of steel in the world market for steel can be blamed on steel producers' decisions to not adopt the latest steel technology
The producers in other countries that adopted it gained market share at the expense of the U.S. Indicate whether the statement is true or false
When a production function exhibits a diminishing, but positive, marginal product of labor,
a. output increases, but at an increasing rate, as more workers are employed. b. output increases, but at a decreasing rate, as more workers are employed. c. output declines as more workers are employed. d. the effects on marginal product are ambiguous.