An economy has the general linear production function

Reference no: EM131005790

An economy has the general LINEAR production function given by: y = Ak Note that this is different from the standard Solow model where y = Ak^α What can we say about this model represented by y = Ak?

Select one:

a. This economy reaches the steady state rather early.

b. This economy reaches the steady state rather late.

c. This economy may not have a steady state.

d. This economy must have negative growth rates.

Reference no: EM131005790

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