Consider Solow's model of economic growth, for a closed economy, without population growth or technical progress. In this case, indicate for each of the following statements whether it is correct by checking the appropriate box: a) Because of diminishing factor returns, the slower an economy grows, the closer its capital stock is to its stationary value; b) The model implies a negative relationship between the growth rate and initial income; c) In the long run, all economies converge unconditionally, in terms of income, to the same stationary state; d) In the long run, all economies converge unconditionally, in terms of growth rate, to the same steady state; e) None of the above statements is correct.
Consider Solow's model of
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