Assume two economies are identical in every way except that one has a higher population growth rate.According to the Solow growth model,in the steady state,the country with the higher population growth rate will have a ______ level of total output and ______ rate of growth of output per worker as/than the country with the lower population growth rate.

Question

Quizplus · Accepted Answer

In the Solow growth model, a higher population growth rate leads to a lower steady-state level of capital per worker, resulting in a lower level of total output. However, the growth rate of output per worker in the steady state is determined by the rate of technological progress, which is the same for both countries, so the growth rate of output per worker remains the same.

Assume Two Economies Are Identical in Every Way Except That