Question

In the steady state of the Solow model, at what rate does output per person grow? At what rate does capital per person grow? How does this compare with the U.S. experience? g

Answer 1

Answer:

Explanation:

In the steady state, output per person in the Solow model grows at the rate of technological progress g. Capital per person also grows at rate g. Let's note that this also means that capital and output per effective worker are unchanged or constant in a state that is always steady. In the united state of America. data, capital and output per worker, both have seen a growth at close to 2 percent per year for the past fifty years that has passed.