Question

In the Solow growth model of an economy with population growth and technological progress, the steady-state...

  1. In the Solow growth model of an economy with population growth and technological progress, the steady-state growth rate in output per worker is equal to:

    (a) zero
    (b) the rate of technological progress g.
    (c) the growth rate of population n plus the rate of technological progress g. (d) the rate of technological progress g minus the growth rate of population n.

  2. In the Solow growth model of an economy with population growth and technological progress, the steady-state growth rate in total output is equal to:

    (a) zero
    (b) the rate of technological progress g.
    (c) the growth rate of population n plus the rate of technological progress g. (d) the rate of technological progress g minus the growth rate of population n.

  3. According to the Solow growth model, persistently rising living standards can only be ex- plained by:

    (a) population growth.
    (b) capital accumulation.
    (c) saving rates.
    (d) technological progress.

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Answer #1

Hi,

Hope you are doing well!

Question:

In the Solow growth model of an economy with population growth and technological progress, the steady-state growth rate in output per worker is equal to:

Answer:

(b) the rate of technological progress g.

Increasing technology development or technology progress increase productivity and output that incraese output per worker.

Question:

According to the Solow growth model, persistently rising living standards can only be ex- plained by:

Answer:

(d) technological progress.

Increasing technology development or technology progress increase productivity and output that incraese output per worker. Increasing per worker income increase living standard.

Thanks

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