In the Solow growth model of an economy with population growth but no technological change,if population grows at rate n,total output grows at rate ______ and output per workers grows at rate ______.

Question

Quizplus · Accepted Answer

In the Solow growth model, output grows at a rate of n+g, where g is the rate of technological progress. Since there is no technological change in this scenario, output would only grow at the rate of population growth (n). However, since the number of workers is also growing at rate n, output per worker would not grow (it would remain constant, or grow at a rate of 0). Therefore, the correct choice is B: population grows at rate n, total output grows at rate n, and output per worker grows at rate 0

In the Solow Growth Model of an Economy with Population