Technological improvement and growth

5 important questions on Technological improvement and growth

What is the growth rate of effective labor?

It is the sum of the growth rate of technological progress and the growth rate of the population. Ga+Gn

If delta is 10 and ga+gn =3 How is the required invesmtent to the capital per effective werker?

= 0,13* K hence 13 % of the capital stock should the investment be to maintain the k/an

In the steady state of the economy, per effective worker ratio are such that ..... Finish the line

Capital per effective worker and output per effective worker are constant K/AN * and Y/AN* respectively.
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In steady state, which identity holds then?

The growth rate of output is equal to the growth rate of the effective labor . AN grows at Ga+Gn

The number of workers grows at Gn but at what rate does the output per worker grows?

Output per worker grows at the growth rate of technological progress. Ga

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