If we define the saving rate as , output as
, and the depreciation rate as
And if
, the economy is:
A) contracting.
B) at the steady state.
C) growing.
D) in its short-run equilibrium.
E) None of these answers is correct.

Question

If we define the saving rate as  , output as 
, and the depreciation rate as 
And if 
, the economy is:
A) contracting. 
B) at the steady state. 
C) growing. 
D) in its short-run equilibrium. 
E) None of these answers is correct.

Quizplus · Accepted Answer

The Answer of If we define the saving rate as  , output as 
, and the depreciation rate as 
And if 
, the economy is:
A) contracting. 
B) at the steady state. 
C) growing. 
D) in its short-run equilibrium. 
E) None of these answers is correct.

If We Define the Saving Rate as , Output