In the Solow Growth Model,if Two Countries Are Otherwise Identical

question 55

Multiple Choice

In the Solow growth model,if two countries are otherwise identical (with the same production function,same saving rate,same depreciation rate,and same rate of population growth) except that Country Large has a population of one billion workers and Country Small has a population of 10 million workers,then the steady-state level of output per worker will be ______ and the steady-state growth rate of output per worker will be ______.

• A) the same in both countries; the same in both countries
• B) higher in Country Large; higher in Country Large
• C) higher in Country Small; higher in Country Small
• D) higher in Country Large; higher in Country Small