In an economy with population growth at rate n, the change in capital stock per worker is given by the equation:

Question

Quizplus · Accepted Answer

The correct equation for the change in capital stock per worker in an economy with population growth at rate n is given by the formula: $\Delta k = sf(k) - (\delta + n)k$, where $s$ is the savings rate, $f(k)$ is the production function per worker, $\delta$ is the depreciation rate, and $n$ is the population growth rate. This equation accounts for both the savings contributing to the increase in capital per worker and the combined effects of depreciation and population growth reducing it.

In an Economy with Population Growth at Rate N, the Change