Assume that technological progress does not occur. Which of the following variables will not change when the economy reaches steady- state equilibrium?
A) Output per worker.
B) Investment per worker.
C) Capital per worker.
D) All of the above.
E) Only A and B.

Question

Quizplus · Accepted Answer

In a steady-state equilibrium without technological progress, output per worker, investment per worker, and capital per worker all remain constant. This is because, in the steady state, all these variables stabilize as the economy stops growing, assuming no technological advancement to spur further growth.

Assume That Technological Progress Does Not Occur