In the combined Solow-Romer model, the growth rate of total output, using the standard production function, is given as:

Question

Quizplus · Accepted Answer

The growth rate of total output in the combined Solow-Romer model is given by the equation: 
g = (n + g + δ) - (1 - α)g∗ - αA/L
where:
n = population growth rate
g = technological progress rate
δ = depreciation rate
α = share of capital in output
g∗ = steady state growth rate of technology
A/L = technology per worker

Using the standard production function Y = F(K,AL) with constant returns to scale, we have:
Y/L = F(K/L,A) = AK^(1-α)(AL)^α/L
Taking the natural logarithm of both sides of the equation, we get:
ln(Y/L) = ln(A) + (1-α)ln(K/L) + αln(A)

The steady state growth rate of output per worker is given by:
g^* = (n + δ) + (1-α)(g^* - δ) - αA/L
Solving for g^* using the equation for g∗, we get:
g^* = (n + δ + αA/L)/(1-α)

Substituting the expression for g^* into the equation for g, we get:
g = (n + g + δ) - (1 - α)(n + δ + αA/L)/(1-α) - αA/L

Simplifying the equation, we get:
g = (n + δ + αA/L)/(1-α)

Therefore, the correct answer is B: 11eab38d_074b_cc13_a5fb_79e2b818623b_TB6622_11.

In the Combined Solow-Romer Model, the Growth Rate of Total