In the model where it is assumed that the state of technology does not change,what parameters and / or variables cause changes in steady state output per worker?
A)savings rate
B)depreciation rate
C)human capital per worker
D)all of above
E) none of above

Question

Quizplus · Accepted Answer

In the Solow growth model with no technological change, steady-state output per worker depends on the savings rate, depreciation rate, and human capital per worker. Higher savings rate and human capital per worker increase the steady-state output per worker, while a higher depreciation rate decreases it. Therefore, all of the above parameters/variables affect the steady-state output per worker.

In the Model Where It Is Assumed That the State