With population growth at rate n but no technological change, the Golden Rule steady state may be achieved by equating the marginal product of capital (MPK):

Question

Quizplus · Accepted Answer

According to the Solow growth model, in the absence of technological progress, the steady state can be achieved by equating the MPK to the rate of population growth (n). This ensures that the economy can maintain a constant level of capital per worker and output per worker, which is the definition of the Golden Rule steady state. Therefore, choice B is the correct answer.

With Population Growth at Rate N but No Technological Change