In the Solow growth model,given the values of A,s,n,and d,the economy has an equilibrium growth rate of real GDP per capita,(Y/N),equal to
A)n.
B)n - d.
C)s - n.
D)(s - D)/n.
E)zero.

Question

Quizplus · Accepted Answer

In the Solow growth model, the equilibrium growth rate of real GDP per capita is zero because technological progress is not included in the basic model, and the model assumes that the economy reaches a steady state where capital per worker and output per worker remain constant over time.

In the Solow Growth Model,given the Values of A,s,n,and D,the