Which of the following will cause an increase in the steady-state growth rate of output per worker?
A)an increase in the saving rate
B)a reduction in the population growth rate
C)a reduction in the rate of depreciation
D)a reduction in the saving rate
E) none of the above

Question

Quizplus · Accepted Answer

In the Solow growth model, the steady-state growth rate of output per worker is determined by the rate of technological progress, which is not affected by changes in the saving rate, population growth rate, or depreciation rate.

Which of the Following Will Cause an Increase in the Steady-State