Suppose the Following Situation Exists for an Economy: Kt+1/N =

question 59

Multiple Choice

Suppose the following situation exists for an economy: Kt+1/N = Kt/N. Given this information, we know with certainty that:

• A) the rate of growth of output is positive in period t.
• B) saving per worker is greater than depreciation per worker in period t.
• C) saving per worker is less than depreciation per worker in period t.
• D) investment per worker equals depreciation per worker in period t.
• E) the economy is operating at the golden rule equilibrium in period t.

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Definitions:

Sedimentary Layers

Strata or layers of rock that have been formed from sediment deposition over vast periods of time.

Block Diagram

A diagram that portrays in three dimensions the shape of the land surface and the subsurface distributions of rock units, folds, faults, and other geologic features.

Erosion

The process by which soil, rock, and other surface material are worn away and transported by natural forces such as wind or water.

Deposition

the geological process by which sediments, soil, and rocks are added to a landform or land mass.