The Solow growth model shows that the growth rate of real GDP per worker depends on:
A)the rate of growth of the money supply.
B)the growth rate of the labour force, n.
C)rate of growth of government debt.
D)all of the above.

Question

Quizplus · Accepted Answer

The Solow growth model states that the growth rate of real GDP per worker depends on technological progress (A), capital accumulation (K), and the growth rate of the labour force (n). Therefore, option A and C are incorrect as they do not correctly reflect the factors that affect the growth rate of real GDP per worker. Option B is the correct choice as it specifically includes the correct factor, the growth rate of the labour force.

The Solow Growth Model Shows That the Growth Rate of Real