This question refers to the Solow–Swan model with constant technology. Imagine the model is in steady state and the population growth rate rises. As a result the steady-state level of real GDP per capita will: a. fall b. rise c. stay the same d. can’t say because we need to know what will happen to the steady-state level of capital per person and, in the absence of that information, we can’t answer the question

Economics:
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ISBN:9781285859460
Author:BOYES, William
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Chapter16: Economic Growth
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This question refers to the Solow–Swan model with constant technology. Imagine the model is in steady state and the population growth rate rises. As a result the steady-state level of real GDP per capita will:

a. fall

b. rise

c. stay the same

d. can’t say because we need to know what will happen to the steady-state level of capital per person and, in the absence of that information, we can’t answer the question

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