Use the information provided below to answer the following question(s).
δ = .11
gA = .03
gN = .02
-Refer to the information above.Given this information,the steady state rate of growth of output per worker is
A)0)
B)2%.
C)3%.
D)5%.
E) 16%.

Question

Quizplus · Accepted Answer

The steady state rate of growth of output per worker (g*) is calculated as g* = δ + gA - gN. Plugging in the values given, we have:

g* = 0.11 + 0.03 - 0.02 = 0.12

So the rate of growth of output per worker in the steady state is 12%, which is closest to option C (3%).

Use the Information Provided Below to Answer the Following Question(s)