Question

In the solow growth model, the steady-state growth rate of output per worker is ________ (a)...

In the solow growth model, the steady-state growth rate of output per worker is ________

(a) equal to the sum of the rate of technological progress plus the rate of population growth

(b) greater than zero

(c) equal to zero

(d) less than zero

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Answer #1

Option C.

  • A Solow growth model is used to demonstrate the long run economic growth by showing how technology, population, labour and capital accumulates in long run.
  • In the Solow growth model, the steady state growth rate of output per worker is constant or equal to zero.
  • According to this model, when the population is increasing but the technology remains constant, and when the population and output are growing at an ''n" rate, then the output per worker is equal to zero.
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