In the Solow growth model,the steady-state growth rate of output per effective worker is ______,and the steady-state growth rate of output per worker is ______.

Question

Quizplus · Accepted Answer

In the Solow growth model, the steady-state growth rate of output per effective worker is zero, which implies that the level of output per effective worker remains constant in the long run. The steady-state growth rate of output per worker is equal to the rate of technological progress, as this is the only factor that can increase the level of output per worker in the long run. The rate of population growth does not have any impact on the steady-state level of output per worker, as it only affects the level of output per capita, which can grow temporarily but cannot sustainably increase the level of output per worker in the long run. Therefore, option B is the correct choice.

In the Solow Growth Model,the Steady-State Growth Rate of Output