Suppose that in the steady state, consumption per worker takes the following form: 4 C N s (1-s) 8 where C is consumption, s is the saving rate, and is the depreciation rate. What would be the steady-state level of consumption per worker if s= 0.65 and 8 = 0.05? (Round your response to two decimal places.) The steady-state level of consumption per worker is Given the information above, would a policy to promote increases in private saving lead to an increase in consumption per worker in the long run? OA. Yes, the economy is beyond its golden-rule level of capital per worker so any increase in saving will cause higher consumption pe worker in the long run. OB. No, the economy is beyond its golden-rule level of capital per worker so any increase in saving will cause lower consumption per worker in the long run. OC. No, the economy is below its golden-rule level of capital per worker so any increase in saving will cause lower consumption per worker in the long run. OD. Yes, the economy is below its golden-rule level of capital per worker so any increase in saving will cause higher consumption per worker in the long run.

Suppose that in the steady state, consumption per worker takes the following form: 4 C N s (1-s) 8 where C is consumption, s is the saving rate, and is the depreciation rate. What would be the steady-state level of consumption per worker if s= 0.65 and 8 = 0.05? (Round your response to two decimal places.) The steady-state level of consumption per worker is Given the information above, would a policy to promote increases in private saving lead to an increase in consumption per worker in the long run? OA. Yes, the economy is beyond its golden-rule level of capital per worker so any increase in saving will cause higher consumption pe worker in the long run. OB. No, the economy is beyond its golden-rule level of capital per worker so any increase in saving will cause lower consumption per worker in the long run. OC. No, the economy is below its golden-rule level of capital per worker so any increase in saving will cause lower consumption per worker in the long run. OD. Yes, the economy is below its golden-rule level of capital per worker so any increase in saving will cause higher consumption per worker in the long run.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter17: Production And Growth

Section17.1: Economic Growth Around The World

Problem 1QQ

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