In the Two-Sector Endogenous Growth Model, the Steady-State Stock of Physical

Multiple Choice

In the two-sector endogenous growth model, the steady-state stock of physical capital is determined by _____, and the growth in the stock of knowledge is determined by _____.

A) the fraction of labor in universities; the saving rate
B) the efficiency of labor; the saving rate
C) the production function; the efficiency of labor
D) the saving rate; the fraction of labor in universities