In the Solow growth model, the assumption of constant returns to scale means that:

A. All economies have the same amount of capital per worker.
B. The steady-state level of output is constant, regardless of the number of workers.
C. The saving rate equals the constant rate of depreciation.
D. The number of workers in an economy does not affect the relationship between output per worker and capital per worker.

The assumption of constant returns to scale in the Solow growth model means d)the number of workers in an economy does not affect the relationship between output per worker and capital per worker.

It means that increasing the amount of capital per worker by a certain percentage will result in the same percentage increase in output per worker.

It does not imply that all economies have the same amount of capital per worker, but rather that the relationship between capital and output per worker is constant across different levels of capital per worker. Therefore, the number of workers in an economy does not affect this relationship.

The steady-state level of output is not constant, but rather determined by the savings rate, the population growth rate, and the rate of technological progress. The saving rate equals the rate of depreciation only in the special case where the economy is in steady state.

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