When the economy is in the steady state,we know with certainty that
A)investment per worker is equal to depreciation per worker.
B)consumption per worker is maximized.
C)output per worker is maximized.
D)the growth rate is maximized.
E) all of the above

Question

Quizplus · Accepted Answer

In steady state, investment per worker is equal to depreciation per worker, which means that the capital stock is constant. At this point, the economy achieves its maximum sustainable output level, but it does not necessarily mean that output per worker is maximized or that consumption per worker is maximized. The growth rate is also not maximized since the economy is no longer expanding. Therefore, only option A is correct.

When the Economy Is in the Steady State,we Know with Certainty