Steady state with technological progress
a) technological progress causes the effective number of workers to increase
b) k = k / (l x e) – capital per effective worker
c) y = y / (l x e) – output per effective worker
d) δk = sf(k) – (δ+n+g¿k
gk is needed to provide capital for the new effective workers created by technological progress
investment exactly offsets the reductions in k attributable to depreciation, population growth, and technological progressthe effects of technological progress
once the economy is in steady state, the rate of growth of output per worker depends only on the rate of technological progress. according to the solow model, only technological progress can explain sustained growth and persistently rising living standards
the golden rule level of capital is now defined as the steady state that maximizes consumption per effective worker 
a) c* = f(k*) – (δ+n+g)k*
b) mpk = δ+n+g
c) mpk – δ=n+gat golden rule level of capitalbalanced growth
technological progress causes the values of many variables to rise together in the steady state – balanced growth
a) capital – output ratio has remained approximately constant over time 
b) capital and output per worker have grown at the same rate as technological progress
c) real wage grows at around 2%, at the same rate as real gdp per worker 4