If Two Economies Are Identical (With the Same Population Growth

question 59

Multiple Choice

If two economies are identical (with the same population growth rates and rates of technological progress) , but one economy has a lower saving rate, then the steady-state level of income per worker in the economy with the lower saving rate:

• A)will be at a lower level than the steady state of the high-saving economy.
• B)will be at a higher level than the steady state of the high-saving economy.
• C)will be at the same level as the steady state of the high-saving economy.
• D)will grow at a slower rate than the high-saving economy.

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Definitions:

Supply Curve

A visual depiction that showcases the connection between the cost of a product and the amount available for sale.

Demand Curve

A graph showing the quantity of a good that consumers are willing and able to purchase at various prices.

Imposed Price

A price that is set by an external authority rather than by market forces of supply and demand.

Consumer-friendly

Describes goods, services, or policies that are designed with the welfare or satisfaction of consumers in mind.