Assume two economies are identical in every way except that one has a higher saving rate. According to the Solow growth model, in the steady state the country with the higher saving rate will have level of output per person and rate of growth of output per worker as/than the country with the lower saving rate. A. the same; the same B. the same; a higher C. a higher; the same D. a higher; a higher

Question

contestada

Respuesta :

eooyibo123 eooyibo123 · Answer 1 · 2021-06-27T06:29:29+02:00

Answer:

a higher; the same

Explanation:

Solow's law attempts to explain how long term productivity is affected by capital accumulation and population growth.

As population increases the steady state of capital per person decreases.

However when the rate of savings is high in the economy there will be a larger capital stock and higher output in the long run.

If the economies are identical as is stated above the the rate of growth of output per worker will be the same.