Assume that an economy experiences both positive population growth and technological progress. A decrease in the saving rate will cause:
A) a permanent decrease in the rate of growth of output.
B) no change in output per effective labour.
C) a permanent decrease in the rate of growth of output per worker.
D) no change in capital per effective labour.
E) no change in the rate of growth of output.

Question

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The Answer of Assume that an economy experiences both positive population growth and technological progress. A decrease in the saving rate will cause:
A) a permanent decrease in the rate of growth of output.
B) no change in output per effective labour.
C) a permanent decrease in the rate of growth of output per worker.
D) no change in capital per effective labour.
E) no change in the rate of growth of output.

Assume That an Economy Experiences Both Positive Population Growth and Technological