Chapter 08 Flashcards
1
Q
Solow growth model
A
A model showing how saving, population growth, and technological progress determine the level of and growth in the standard of living.
2
Q
Steady state
A
A condition in which key variables are not changing.
3
Q
Golden Rule level of capital
A
the saving rate in the Solow growth model that leads to the steady state in which consumption per worker (or consumption per efficiency unit of labor) is maximized.
