Question

In the Solow growth model, with a given production function, depreciation rate, saving rate, and no technological change, lower rates of population growth produce: lower steady-state growth rates of total output. lower steady-state ratios of capital per worker. lower steady-state growth rates of output per worker. lower steady-state levels of output per worker.

Answer 1

In the Solow growth model, with a given production function, depreciation rate, saving rate, and no technological change, lower rates of population growth produce lower steady-state growth rates of total output.

Option: A

Explanation:

Solow growth model describes production function, depreciation rate, saving rate and no technological change. Lower rates of population growth produce lower steady state growth rates of total output. Population increases with increasing output but in a steady state.

The Solow–Swan model is an economic model of long-run economic growth. It was formed in the neo classical economics. Long run economic growth was explained by capital accumulation. Technological progress considers by increasing productivity and labor force.