Suppose an economy experiences technological change at rate gA, depreciation at rate δ, and population growth...

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Suppose an economy experiences technological change at rate gA, depreciation at rate LaTeX: delta δ, and population growth at rate LaTeX: g_N gN. Furthermore, the economy saves at a constant rate s. If the economy is in steady state, we would expect

output per worker to grow at a rate of LaTeX: g_A+g_N

output per worker to be constant

output per worker to grow at a rate of LaTeX: delta+g_A+g_N

output per worker to grow at a rate of

output per worker to grow at a rate of LaTeX: g_N

business economics

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Answer 1

Answer #1

If the economy is in steady state and there is technological growth at the rate of GA, then the output per worker will always grow at the rate of growth of technology i.e GA.

Hence the correct answer is (D).

(I hope you satisfied)

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Answer 2

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Suppose an economy experiences technological change at rate gA, depreciation at rate δ, and population growth...

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