1.Suppose an economy is described by the Solow model. The rate of population growth is 1 percent, the rate of technological progress is 2 percent, the depreciation rate is 5 percent, and the saving rate is 10 percent. In steady state, output per person grows at a rate of

Question options:

1 percent

2 percent

3 percent

4 percent

Question 2

0 / 1 point

2. In the steady state of the Solow model with technological progress, which of the following variables is constant?

Question options:

capital per worker

the labor-output ratio

the real rental price of capital

the real output