In the textbook production model, the productivity parameter enters the production function with an exponent of one, while in the Solow model's equation for the steady-state stock of capital it is greater than one because: a. the endogenous level of the capital stock itself depends on productivity. b. there is no productivity parameter in the production model. c. the productivity measure is zero in the production model. d. the productivity measure is negative in the Solow model. e. the exogenous level of the capital stock itself depends on productivity.
In the textbook production model, the productivity parameter enters the production function with an exponent of one, while in the Solow model's equation for the steady-state stock of capital it is greater than one because: a. the endogenous level of the capital stock itself depends on productivity. b. there is no productivity parameter in the production model. c. the productivity measure is zero in the production model. d. the productivity measure is negative in the Solow model. e. the exogenous level of the capital stock itself depends on productivity.
Chapter1: Making Economics Decisions
Section: Chapter Questions
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