Assume that an economy experiences both positive population growth and technological progress.Once the economy has achieved balanced growth,we know that output (Y)is
A)constant.
B)growing at a rate of gA + gN.
C)growing at a rate of gN.
D)growing at a rate of gA.
E) growing at a rate of gA - gN.

Question

Quizplus · Accepted Answer

In a balanced growth scenario with both positive population growth (gN) and technological progress (gA), the output (Y) grows at the sum of the rates of population growth and technological progress, hence gA + gN.

Assume That an Economy Experiences Both Positive Population Growth and Technological