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According to the Solow model of economic growth, if there is no productivity growth, what will happen to output per worker, consumption per worker, and capital per worker in the long run?

Answer :

In the Solow Model of economic growth, if there is no productivity growth, output per worker, consumption per worker, and capital per worker will remain constant in the long run. Therefore, there will be no economic growth.

According to the Solow model of economic growth, if there is no productivity growth, output per worker, consumption per worker, and capital per worker will all remain constant in the long run. This is because the Solow model assumes that there are diminishing returns to capital, meaning that as more capital is added to the economy, the additional output produced by each unit of capital will decrease. Therefore, without productivity growth, the economy will eventually reach a steady state where output per worker, consumption per worker, and capital per worker will all be constant. In other words, the economy will stop growing in the long run without productivity growth.

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