Steady state

Updated: Aug 20, 2021

In economics, a state of a dynamic economy where certain characteristics do not change over time. In neoclassical economics this is the state with a constant capital-labour ratio. In particular, this implies that per capita quantities of output and consumption are also constant, whereas the levels of capital stock, output, and consumption in the steady state grow at the rate of population growth.

Reference: Oxford Press Dictonary of Economics, 5th edt.

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