Suppose an economy experiences technological change at rate gA, depreciation at rate δ, and population growth at rate 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 |
output per worker to be constant |
output per worker to grow at a rate of |
output per worker to grow at a rate of |
output per worker to grow at a rate of |
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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Suppose an economy experiences technological change at rate gA, depreciation at rate δ, and population growth...
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