In the Solow growth model with no population growth and no technological progress, the higher the steady capital-per-worker ratio, the higher the steady-state:

Question

Quizplus · Accepted Answer

The steady-state level of output per worker is directly proportional to the steady-state capital-per-worker ratio in the Solow growth model. This is because in the model, output is produced using a combination of labor and capital, and higher capital per worker increases productivity, leading to higher output per worker.

In the Solow Growth Model with No Population Growth and No