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 actual worker is ______.
A) the sum of the rate of technological progress plus the rate of population growth; zero
B) zero; the rate of technological progress
C) zero; zero
D) the rate of technological progress; the rate of population growth

Question

Quizplus · Accepted Answer

In the Solow growth model, output per effective worker grows at a rate of zero in the steady state, while output per actual worker grows at the rate of technological progress.

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