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Suppose the rate of technological progress remains unchanged at its value in (a)that is, let us assume that productivity continues to grow at about the
Suppose the rate of technological progress remains unchanged at its value in (a)that is, let us assume that productivity continues to grow at about the same rate as it has over the past 15 years. According to some estimates, the labor force is projected to grow at an average annual rate of 0.4% over the next decade. As a result, what rate of average annual GDP growth can we expect (according to the longrun model) going forward? At what annual rate should we expect GDP per worker to grow
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