Figure 8.2

-Refer to Figure 8.2.Suppose the economy is originally in steady state at k*₂.All else equal,if the labour force growth rate increases,the change in the capital-labour ratio is represented by the vertical distance between

Question

Figure 8.2
Figure 8.2 -Refer to Figure 8.2.Suppose the economy is originally in steady state at k*₂.All else equal,if the labour force growth rate increases,the change in the capital-labour ratio is represented by the vertical distance between A) sf(k) and (d + n₂) k. B) sf(k) and (d + n₁) k. C) (d + n₁) k and (d + n₂) k. D) k*₂ and (d + n₂) k.

Figure 8.2 -Refer to Figure 8.2.Suppose the economy is originally in steady state at k*₂.All else equal,if the labour force growth rate increases,the change in the capital-labour ratio is represented by the vertical distance between A) sf(k) and (d + n₂) k. B) sf(k) and (d + n₁) k. C) (d + n₁) k and (d + n₂) k. D) k*₂ and (d + n₂) k.

-Refer to Figure 8.2.Suppose the economy is originally in steady state at k*₂.All else equal,if the labour force growth rate increases,the change in the capital-labour ratio is represented by the vertical distance between

Quizplus · Accepted Answer

An increase in the labour force growth rate will shift the (d + n)k line upwards, leading to a higher capital-labour ratio. The vertical distance between sf(k) and (d + n₁)k represents the change in the capital-labour ratio.

Figure 8.2 -Refer to Figure 8.2.Suppose the Economy Is Originally in Steady