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Use the following information to answer the questions below:
(1) the rate of depreciation is 8% per year,
(2) the population growth rate is 1% per year, and
(3) the growth rate of technology is 2% per year.
a. Refer to the information above. Which of the following represents the steady state growth rate of output in this economy?
A) 1%.
B) 2%.
C) 3%.
D) 13%
b. Refer to the information above. Which of the following represents the steady state growth rate of output per worker in this economy?
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