The economy of Macroland can be described by the Solow growth model.In Macroland the labour force grows at 3 percent per year,labour-augmenting technology increases at 2 percent per year,the saving rate is 15 percent per year,and the rate of capital depreciation is 10 percent per year.Choosing from among the following variables: output per effective worker,output per worker,total output,labour force,capital per worker,and capital per effective worker,which variables will be growing at a:
a.2 percent rate?
b.3 percent rate?
c.5 percent rate?
d.0 percent rate?

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The Answer of The economy of Macroland can be described by the Solow growth model.In Macroland the labour force grows at 3 percent per year,labour-augmenting technology increases at 2 percent per year,the saving rate is 15 percent per year,and the rate of capital depreciation is 10 percent per year.Choosing from among the following variables: output per effective worker,output per worker,total output,labour force,capital per worker,and capital per effective worker,which variables will be growing at a:
a.2 percent rate?
b.3 percent rate?
c.5 percent rate?
d.0 percent rate?

The Economy of Macroland Can Be Described by the Solow