In an closed economy with production function , the national saving rate is 15%, capital depreciation is 5%, population growth rate is 3%, assume labor growth rate is equal to population growth rate, and technology growth rate equal to 2%. What is the growth rate of output per real labor at Steady State level?

The question is asking for the growth rate of output per real labor at the steady state level in a closed economy with a given set of parameters.

In the Solow growth model, the steady state growth rate of output per worker is equal to the rate of technological progress. This is because in the long run, increases in capital per worker due to saving and investment are offset by decreases in capital per worker due to depreciation and population growth. Therefore, the only source of long-run growth in output per worker is technological progress.

Given that the technology growth rate is 2%, the growth rate of output per real labor at the steady state level is also 2%.

In the Solow growth model, the growth rate of output per effective worker in the steady state is equal to the rate of technological progress. This is because in the steady state, the capital stock per effective worker and output per effective worker are constant, so any growth in output per worker must come from technological progress.

Given that the technology growth rate is 2%, the growth rate of output per real labor (effective worker) at the steady state level is also 2%.

Please note that the national saving rate, capital depreciation, and population growth rate do not directly affect the growth rate of output per effective worker in the steady state in the Solow model. These parameters determine the level of output per effective worker in the steady state, but not its growth rate.