In the Solow Growth Model, Countries with Identical Total Factor

question 9

Multiple Choice

In the Solow growth model, countries with identical total factor productivities, identical labour force growth rates, and identical savings rates

• A) always have identical levels of capital per worker and output per worker.
• B) in equilibrium, have identical levels of capital per worker and output per worker.
• C) in equilibrium, have identical levels of capital per worker but not necessarily identical levels of output per worker.
• D) in equilibrium, have identical levels of output per worker but not necessarily identical levels of capital per worker.
• E) there is no convergence to the same level of capital per worker or output per worker.