In the Solow model with a positive rate of population growth n and technological progress z, the steady state level of per worker real output y grows at the rate:

Question

Quizplus · Accepted Answer

In the Solow model, per worker real output y in the steady state grows at the rate of technological progress z. The rate of population growth n affects the level of per worker output in the steady state, but not the growth rate once the steady state is reached. Therefore, the correct choice is (C) - y grows at a rate of z.

In the Solow Model with a Positive Rate of Population