Question

Assume two economies are identical in every way except that one has a higher population growth rate. According to the Solow growth model, in the steady state, the country with the higher population growth rate will have a ______ level of total output and ______ rate of growth of output per worker as/than the country with the lower population growth rate.

Answer 1

Answer:lower; the same

Explanation:The Solow Growth Model is an external economic growth model that attempts to evaluate the changes in the level of production in an economy per time, as changes takes place in the growth rate, the savings rate, and the rate of technological progress of the population.

Allow built his economic model on certain assumptions which are

A composite product produced,

Some allowance must be given to the depreciation before the output is constantly as a NET OUTPUT,

The production function is of similar products of the first degree.