Question

Ricardo stationary state model diagram ​

Answer 1

Explanation:

A steady-state economy is an economy made up of a constant stock of physical wealth (capital) and a constant population size. In effect, such an economy does not grow in the course of time.:366–369 :545 The term usually refers to the national economy of a particular country, but it is also applicable to the economic system of a city, a region, or the entire world. Early in the history of economic thought, classical economist Adam Smith of the 18th century developed the concept of a stationary state of an economy: Smith believed that any national economy in the world would sooner or later settle in a final state of stationarity.

Answer 2

Answer:

Although Ricardo drew heavily on Adam Smith’s writings, yet he was the first economist who presented the classical thought in a consistent body of economic analysis, presented in a vigorous form. His ideas are embodied in his book, The Principles of Political Economy and Taxation (1817) and the many letters that he addressed to contemporary economists. The Ricardian theory of rent is well known; but there are also ideas contained in his writings which throw light on the development process.