If South Korea's steady-state GDP per worker is higher than that in the Philippines, you might conclude that the saving/depreciation rate in South Korea is higher/lower than in the Philippines.

Question

Quizplus · Accepted Answer

A higher steady-state GDP per worker suggests a higher capital-to-labor ratio, which can be achieved through a higher saving rate or lower depreciation rate. Therefore, we can conclude that the saving rate in South Korea is likely higher than in the Philippines.

If South Korea's Steady-State GDP Per Worker Is Higher Than