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Exhibit: Steady-State Consumption II
-(Exhibit: Steady-State Consumption II) The Golden Rule level of steady-state consumption per worker is:

Question

Use the following to answer questions :
Exhibit: Steady-State Consumption II 
-(Exhibit: Steady-State Consumption II) The Golden Rule level of steady-state consumption per worker is:

Quizplus · Accepted Answer

The Golden Rule level of steady-state consumption per worker is achieved when the economy is saving just enough to keep capital (and thus output) per worker constant over time, maximizing consumption per worker. This level occurs where the difference between the output per worker and the investment necessary to keep capital per worker constant (i.e., the consumption curve) is at its maximum, which is represented by the distance BC in typical economic models.

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