In the absence of technological progress,which of the following is true when the economy is operating at the steady state?
A)The growth of output per worker is zero.
B)The growth of output per worker is equal to the saving rate.
C)The growth of output per worker is equal to the rate of investment.
D)The growth of output per worker is equal to the rate of depreciation.
E) none of the above

Question

Quizplus · Accepted Answer

In a steady state without technological progress, the growth of output per worker is zero because all savings are used to replace depreciating capital, leaving no room for growth in output per worker.

In the Absence of Technological Progress,which of the Following Is