Question

In the Solow Growth Model, if an economy is at its 'Steady State' and there is a sudden increase in the rate of technological progress (g), the long-run growth rate of output per worker will:

A Remain constant.
B Increase to the new level of g.
C Decrease because of diminishing returns.
D Initially rise and then return to zero.
Practice Next

Hey! Ask a query

🎓
Think You're Ready for RBI Grade B?
RBI Grade B 2026 Phase 1 Memory Based Paper
  • 200 Questions with Detailed Solutions
  • Section-wise Coverage (GA, English, Quant & Reasoning)