Consider an economy that is described by a basic Solow growth model. If total factor productivity is constant, which of the following statements does not describe the steady state of this economy? O Output per worker, capital per worker, and consumption per worker grow at the same rate as the workforce. The growth rate of the capital-labour ratio is zero. The capital-labour ratio is constant. O Aggregate output, capital, and consumption grow at the same rate as the workforce.

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Consider an economy that is described by a basic Solow growth model. If total factor
productivity is constant, which of the following statements does not describe the
steady state of this economy?
O Output per worker, capital per worker, and consumption per worker grow at the
same rate as the workforce.
The growth rate of the capital-labour ratio is zero.
The capital-labour ratio is constant.
Aggregate output, capital, and consumption grow at the same rate as the
workforce.
Transcribed Image Text:Consider an economy that is described by a basic Solow growth model. If total factor productivity is constant, which of the following statements does not describe the steady state of this economy? O Output per worker, capital per worker, and consumption per worker grow at the same rate as the workforce. The growth rate of the capital-labour ratio is zero. The capital-labour ratio is constant. Aggregate output, capital, and consumption grow at the same rate as the workforce.
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