16th June 2020

coursehero
19

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 physicalworker grows at rateg= 1%, total output grows at raten+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.
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