Question 22 1 pts Suppose an economy experiences technologic

Question 22 1 pts Suppose an economy experiences technological change at rate gA, depreciation at rate 8 and population growth at rate gN. Furthermore, the economy saves at a constant rate s. If the economy is in steady state, we would expect output per worker to grow at a rate of ? output per worker to grow at a rate of gN output per worker to grow at a rate of gA output per worker to grow at a rate of gA+ gN 9A + gN O O output per worker to be constant

Solution

If the economy is in steady state and there is technological growth at the rate of G_A, then the output per worker will always grow at the rate of growth of technology i.e G_A. Hence the correct answer is (C).