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If Ct Denotes Consumption, It Denotes Investment, and Yt Is ×\times

Question 61

Multiple Choice

If Ct denotes consumption, It denotes investment, and Yt is output, the resource constraint in the Solow model is:


A) Yt = Ct ×\times It
B) Yt=Ct+ItY _ { t } = C _ { t } + I _ { t }
C) Yt=AˉKt1/3Lt2/3Y _ { t } = \bar { A } K _ { t } ^ { 1 / 3 } L _ { t } ^ { 2 / 3 }
D) ΔKt=ItdˉKt\Delta K _ { t } = I _ { t } - \bar { d } K _ { t }
E) None of these answers are correct.

Correct Answer:

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