Assume the Economy Has Achieved the Balanced Growth Steady State

question 66

Essay

Assume the economy has achieved the balanced growth steady state.Explain what factors determine the rates of growth of each of the following variables when balanced growth is achieved: output per effective worker,capital per effective worker,output per worker,output,and consumption per worker.

---

Definitions:

Net Loss

The situation where a company's expenses exceed its revenues during a specific period, leading to a negative profit.

Long-term Debt

Loans, bonds, or other forms of financing that are repayable over a period longer than one year.

Cash Dividends

These are payments made by a company out of its profits to its shareholders, usually in the form of cash.

Cash Flow

The sum of funds being moved into and out of a company, particularly in relation to its cash flow.