This question refers to the Solow–Swan model with constant technology. Imagine the model is in steady state and the population growth rate rises. As a result the steady-state level of real GDP per capita will: a. fall b. rise c. stay the same d. can’t say because we need to know what will happen to the steady-state level of capital per person and, in the absence of that information, we can’t answer the question
This question refers to the Solow–Swan model with constant technology. Imagine the model is in steady state and the population growth rate rises. As a result the steady-state level of real GDP per capita will: a. fall b. rise c. stay the same d. can’t say because we need to know what will happen to the steady-state level of capital per person and, in the absence of that information, we can’t answer the question
Chapter16: Economic Growth
Section: Chapter Questions
Problem 3E
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This question refers to the Solow–Swan model with constant technology. Imagine the model is in steady state and the population growth rate rises. As a result the steady-state level of real
a. fall
b. rise
c. stay the same
d. can’t say because we need to know what will happen to the steady-state level of capital per person and, in the absence of that information, we can’t answer the question
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