# At what rates do total output output per worker and output per effective worker grow?

1.

**At what rates do total output**,**output per worker, and output per effective workergrow**? At the steady state**output per effective worker**remains constant,**output per**physical**worker grows**at**rate**g= 1%,**total output grows**at**rate**n+g= 3%.Also to know is, what is the steady state growth rate of output per worker in Alpha?

**What is the steady**-

**state growth rate of output per worker in Alpha**? In the

**steady state**, capital

**per worker**is constant, so

**output per worker**is constant. Thus, the

**growth rate**of

**steady**-

**state output per worker**is 0.

Subsequently, question is, what is the golden rule level of capital per worker?

The

**Golden Rule capital**stock is the**level**at which MPK = δ, so that the marginal product of**capital**equals the depreciation**rate**. 3. When the economy begins above the**Golden Rule level of capital**, reaching the**Golden Rule level**leads to higher consumption at all points in time.How does the saving rate affect the steady state level of income?

1) In the Solow Growth Model,

**how does the saving rate affect the steady**-**state level of income**? In this model, an increase in the**rate**of**saving**has a**level effect**on the**income**per person; it causes a period of rapid growth but eventually that growth slows as SS is reached.What is steady state growth?

Meaning: The concept of

**steady state growth**is the counterpart of long-run equilibrium in static theory. In**steady state growth**all variables, such as output, population, capital stock, saving, investment, and technical progress, either grow at constant exponential rate, or are constant.