-(Figure: the Solow Model)In the Accompanying Graph of the Solow

Multiple Choice

-(Figure: The Solow Model) In the accompanying graph of the Solow model,if the production function shifts from Y₁ to Y₂ while capital remains at K₁,then the capital stock will:

A) decrease until it reaches the new steady-state level.
B) increase until it reaches the new steady-state level.
C) increase for a time and then return to K₁.
D) remain unchanged.