If the saving rate increases, a countryʹs growth rate of real GDP per hour of labor and __________capital per hour of labor __________

Question

Quizplus · Accepted Answer

When the saving rate increases, the economy invests more in capital, leading to an increase in the capital per hour of labor. This, in turn, can lead to an increase in the growth rate of real GDP per hour of labor. Therefore, both variables increase in this scenario.

If the Saving Rate Increases, a Countryʹs Growth Rate of Real