Assume that an economy experiences both positive population growth and technological progress.Once the economy has achieved balanced growth,we know that growth rate of K / NA is
A)gA gN.
B)gA + gN.
C)0)
D)gA.
E) none of the above

Question

Quizplus · Accepted Answer

In a balanced growth scenario, the growth rate of capital per effective worker (K/NA) is 0, indicating that capital per effective worker is constant over time. This is because both the population (N) and technology (A) are growing, but the economy adjusts to maintain a steady state of capital per effective worker.

Assume That an Economy Experiences Both Positive Population Growth and Technological