A problem with the constant average product of capital growth model is that:
A)output per worker grows in the long run.
B)there is no convergence.
C)the Y/K ratio grows.
D)all of the above.

Question

Quizplus · Accepted Answer

The constant average product of capital growth model assumes that output per worker does not grow in the long run, which means there is no convergence. The Y/K ratio also does not grow in this model. Therefore, the correct answer is B.

A Problem with the Constant Average Product of Capital Growth