In the Solow growth model with technological progress in the steady state:
A)capital per worker is constant.
B)capital per worker is cyclical.
C)capital per worker is increasing.
D)capital per worker is declining.

Question

Quizplus · Accepted Answer

In the Solow growth model with technological progress in the steady state, capital per worker is increasing due to the continuous increase in productivity resulting from technological progress. As a result, in the steady state, the economy will consistently grow, with capital and output per worker continuing to increase.

In the Solow Growth Model with Technological Progress in the Steady