Which of the following will occur when the economy has reached a balanced growth equilibrium?
A) The growth rate of output equals the rate of depreciation
B) The growth rate of output per effective labour is zero
C) The growth rate of capital is equal to the rate of depreciation
D) The growth rate of capital per effective labour is equal to the rate of technological progress
E) none of the above
Answer: B) The growth rate of output per effective labour is zero
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