A balanced growth path is defined as the situation where

K/Y
is constant (or, equivalently,

Question

A balanced growth path is defined as the situation where K/Y is constant (or, equivalently,

where k = K/AL is constant). In the balanced growth path, the growth rates of variables are all constant. For each of the variables below, determine what the growth rate in the balanced growth path will be:

a. Output per effective worker

b. Consumption per worker

c. Investment

Macroeconomics