Hence capital stock rises till the economy reaches a new steady state. The output (income) worker rises on the account of increased the capital per worker.It is the total amount of physical capital at any particular moment in time. Capital is one of the factors of production. B) Write down the dynamic equation that the aggregate capital stock follows in this economy. C) Now focus on steady-states. As is standard, households own the capital stock (they make the investment decision), and they rent it to firms. The capital stock increases as long as there is enough new investment to replace the worn out capital and still contribute some extra. Learn about and track progress on homelessness and the planning and construction of safe, affordable homes. The official website of the City of Oakland.