Which of the following statements is TRUE according to the Solow Growth Model (discussed in class)? Group of answer choices
A. Taxation allows the government to allocate labor and capital in the most efficient way to reach Pareto optimality.
b. The change in the capital stock (per worker) is equal to the difference between (new) investment and the annual depreciation of the capital stock.
c. Under the "steady state," of the economy, government redistribution of labor and capital improves economic efficiency and welfare.
d. The value or price of goods and services in a market economy is determined by adding a profit margin to their production costs.
