Under the assumptions that (1) labor-augmenting technological progress is equal to z and (2) the labor force grows at the rate of n, the Solow model predicts that in the steady state:

Question

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In the Solow model with labor-augmenting technological progress (rate z) and labor force growth (rate n), the steady state predictions include: output growing at the rate of n + z (A), per worker output growing at the rate of z (B), and output per effective worker being constant (C). All these statements are correct, making D the right choice.

Under the Assumptions That (1) Labor-Augmenting Technological Progress Is Equal