Assuming that technological progress increases the efficiency of labor at a constant rate is called:
A) endogenous technological progress.
B) the efficiency-wage model of economic growth.
C) labor-augmenting technological progress.
D) the Golden Rule model of economic growth.

Question

Quizplus · Accepted Answer

Assuming that technological progress increases the efficiency of labor at a constant rate is known as "labor-augmenting technological progress." This means that technology advancements make workers more productive without changing the amount of labor required. This kind of technological progress is an essential factor in economic growth and is often used in growth models.

Assuming That Technological Progress Increases the Efficiency of Labor at a Constant