In a Steady State with Population Growth and Technological Progress

question 45

Multiple Choice

In a steady state with population growth and technological progress:

• A) the real rental price of capital is constant and the real wage grows at the rate of technological progress.
• B) the real rental price of capital grows at the rate of technological progress and the real wage is constant.
• C) both the real rental price of capital and the real wage grow at the rate of technological progress.
• D) both the real rental price of capital and the real wage are constant.

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