In a Solow Model with Technological Change, If Population Grows

question 40

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 effective worker grows at a percent rate.

• A)0
• B)2
• C)3
• D)5

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Definitions:

Urinary Bladder

A hollow muscular organ that stores urine before it is excreted from the body.

Endoderm

The innermost layer of the early embryo, which gives rise to the lining of the digestive and respiratory systems, among other structures.

Neuroectoderm

Part of the ectoderm of an embryo giving rise to the brain and spinal cord.

Postganglionic Autonomic Neurons

Neurons that transmit signals from autonomic ganglia to target organs, involved in the regulation of involuntary bodily functions.