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In a Steady-State Economy with a Saving Rate S, Population

Question 3

Multiple Choice

In a steady-state economy with a saving rate s, population growth n, depreciation rate δ, and labour-augmenting technological progress g, the formula for the steady-state ratio of capital per effective worker (k*) , in terms of output per effective worker (f (k*) ) , is


A) sf (k) / (δ + n + g) .
B) s / ((f (k) ) (δ + n + g) ) .
C) f (k) / ((s) (δ + n + g) ) .
D) (s - f (k) ) / (δ + n + g) .

Correct Answer:

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