Which of the following is not constant when balanced growth is obtained?
A)Y / NA
B)NA
C)K / NA
D)all of the above
E) none of the above

Question

Quizplus · Accepted Answer

In balanced growth, ratios like Y/NA (output per effective labor) and K/NA (capital per effective labor) remain constant, reflecting a steady state where the economy grows at a rate that keeps these ratios stable. However, NA (effective labor) itself is not constant; it typically grows over time due to increases in population and improvements in technology.

Which of the Following Is Not Constant When Balanced Growth