In a Solow Model with Technological Change, If Population Grows

question 27

Multiple Choice

In a Solow model with technological change, if population grows at a 2 percent rate and the efficiency of labor grows at a 3 percent rate, then in the steady state, output per actual worker grows at a percent rate.

• A)0
• B)2
• C)3
• D)5

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Definitions:

Insoluble

A substance that does not dissolve in a specific solvent under certain conditions.

Phosphatidyl Choline

A major component of biological membranes, also known as lecithin, involved in membrane-mediated cell signaling and metabolism.

Lecithin

A fatty substance found in plant and animal tissues, used as an emulsifier in food production and as a supplement.

Sodium Stearate

A sodium salt of stearic acid, often used as a surfactant in soaps and as a thickening agent.