Respuesta :
The correct answer is b. both have different steady-state output levels and the same capital stock below the steady-state level. It is correct because two countries will grow differently only when their output level differ from each other, with the same employed labor, capital, and other factors of production.
What is capital stock?
A company's capital stock is the total number of common and preference shares that it is permitted to issue under the terms of its corporate charter. The maximum number of shares that can ever be issued and outstanding is capital stock, which can only be issued by the corporation. The sum is shown on the balance sheet under shareholders' equity for the business.
The number of common and preferred shares that a corporation is permitted to issue—recorded on the balance sheet under shareholders' equity—is known as capital stock.
- The maximum number of shares that a corporation can ever have outstanding is equal to the quantity of capital stock.
- By issuing capital stock, a business can raise funds without taking on debt.
- The disadvantages of issuing capital stock include the company's increased control and
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