During the transition to the steady state in the Solow growth model:
A)the output per worker rises.
B)labour force participation rises.
C)the rate of growth of capital rises.
D)all of the above.

Question

Quizplus · Accepted Answer

During the transition to the steady state, the output per worker rises. While the other options may occur in certain circumstances, they are not universal outcomes of the transition to the steady state.

During the Transition to the Steady State in the Solow