In the absence of productivity growth,in a steady-state economy
A)output per worker and consumption per worker remain constant over time.
B)output per worker remains constant over time, but consumption per worker grows over time.
C)output per worker grows over time, but consumption per worker remains constant over time.
D)output per worker and consumption per worker both grow over time.

Question

Quizplus · Accepted Answer

In a steady-state economy, the level of output is constant over time as there is no economic growth. Since productivity growth is not occurring, output per worker will not increase over time. Since the level of output remains constant and the population is also constant, the consumption per worker will also remain constant over time. Therefore, option A is the correct answer.

In the Absence of Productivity Growth,in a Steady-State Economy