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In the Solow growth model, where s is the saving rate, y is output per worker, and i is investment per worker, consumption per worker (c) equals:______.
A. (1 – s)y.
B. (1 + s)y.
C. sy .
D. (1 – s)y – i.

Respuesta :

jleanon

Answer:

A. (1 – s)y.

Explanation:

Solow growth model describes  how saving, population growth, and technological change affect output over time and describes changes in the economy over time.

In the Solow growth model, where s is the saving rate, y is output per worker, and i is investment per worker, consumption per worker (c) equals:(1 – s)y

ayfat23

The Solow growth model is in the form c= (1 – s)y. whereby

s=saving rate

y=output per worker

i=investment per worker, consumption per worker A:  (c) =(1 – s)y

  • The Solow–Swan model can be regarded as an economic model of long-run economic growth.

  • It helps to give out the  long-run economic growth, using capital accumulation as well as labor or population growth. It can be calculated using c =(1 – s)y where the terms are defined above.

Therefore, option A is correct.

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https://brainly.com/question/16243862?referrer=searchResults

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