Growth rate of output per worker

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Use the following information to answer the questions below:

(1) the rate of depreciation is 8% per year,

(2) the population growth rate is 1% per year, and

(3) the growth rate of technology is 2% per year.

a. Refer to the information above. Which of the following represents the steady state growth rate of output in this economy?

A) 1%.

B) 2%.

C) 3%.

D) 13%

b. Refer to the information above. Which of the following represents the steady state growth rate of output per worker in this economy?

A) 1%.

B) 2%.

C) 3%.

D) 13%

Reference no: EM131074779

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