Figure 8.1

-Refer to Figure 8.1.Suppose the economy is originally in steady state at k*₁.If the saving rate increases from s₁ to s₂,the capital-labour ratio will begin to ________,and real GDP per worker will ________.

Question

Figure 8.1
Figure 8.1 -Refer to Figure 8.1.Suppose the economy is originally in steady state at k*₁.If the saving rate increases from s₁ to s₂,the capital-labour ratio will begin to ________,and real GDP per worker will ________. A) rise; rise B) rise, fall C) fall, fall D) fall; rise

Figure 8.1 -Refer to Figure 8.1.Suppose the economy is originally in steady state at k*₁.If the saving rate increases from s₁ to s₂,the capital-labour ratio will begin to ________,and real GDP per worker will ________. A) rise; rise B) rise, fall C) fall, fall D) fall; rise

-Refer to Figure 8.1.Suppose the economy is originally in steady state at k*₁.If the saving rate increases from s₁ to s₂,the capital-labour ratio will begin to ________,and real GDP per worker will ________.

Quizplus · Accepted Answer

An increase in the saving rate leads to more investment, which raises the capital-labour ratio, and consequently, real GDP per worker also rises.

Figure 8.1 -Refer to Figure 8.1.Suppose the Economy Is Originally in Steady