122k views
2 votes
In the Solow growth model with population growth and labor-augmenting technological change, the break-even level of investment must cover:______

1. depreciating capital, capital for new workers, and capital for new effective workers.
2. depreciating capital and capital for new workers.
3. depreciating capital and capital for new effective workers.
4. depreciating capital.

1 Answer

3 votes

Answer:

1. depreciating capital, capital for new workers, and capital for new effective workers.

Step-by-step explanation:

break-even investment is the level of investment necessary to keep the capital-labor ratio constant.

User Oldsea
by
7.3k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.