In the Solow Growth Model, the Steady-State Growth Rate of Output

question 75

Multiple Choice

In the Solow growth model, the steady-state growth rate of output per effective worker is ______, and the steady-state growth rate of output per actual worker is ______.

• A) the sum of the rate of technological progress plus the rate of population growth; zero
• B) zero; the rate of technological progress
• C) zero; zero
• D) the rate of technological progress; the rate of population growth

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Definitions:

Hot Spot

A location on the Earth's surface that has experienced active volcanism for a long period, thought to be above a mantle plume.

Divergent Margin

A boundary between two tectonic plates that are moving away from each other, often associated with volcanic activity and seafloor spreading.

Island Arc

A curved chain of volcanic islands located at a tectonic plate boundary, formed by the subduction of an oceanic plate beneath another.

Gabbro

A coarse-grained igneous rock that forms from the slow cooling of magma beneath the Earth's surface, composed mainly of plagioclase feldspar and pyroxene.