Figure 10-2 -Initially, the Economy Is at Point B on Figure Above

Figure 10-2
-Initially, the economy is at point B on Figure above. According to the Solow growth model, a dramatic decrease in the rate of saving after complete adjustment shifts the economy from ________.

A) B to H, increasing output per capita
B) B to C, increasing output and capital per capita
C) B to D, decreasing the output and capital per capita in the long run
D) B to E, decreasing output per capita but holding per capita capital constant