Balanced growth paths can differ across countries due to differences in saving rates,labour force growth rates,and the rates of labour-augmenting technological change.These differences are likely to result in differences in ________,a common measure of the standard of living.

Question

Quizplus · Accepted Answer

The measure of the standard of living mentioned in the question is likely to be real GDP per capita, as this is a common measure of a country's economic output per person, and is often used as an indicator of a country's overall level of wealth and economic development. The differences in saving rates, labour force growth rates, and rates of technological change mentioned in the question can all affect a country's GDP per capita, and therefore impact the standard of living of its citizens.

Balanced Growth Paths Can Differ Across Countries Due to Differences