To Determine Whether an Economy Is Operating at Its Golden

question 57

Multiple Choice

To determine whether an economy is operating at its Golden Rule level of capital stock, a policymaker must determine the steady-state saving rate that produces the:

• A) largest MPK.
• B) smallest depreciation rate.
• C) largest consumption per worker.
• D) largest output per worker.

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Definitions:

Subjective Idealism

The view that nothing exists except ideas and minds. The eighteenth-century idealist George Berkeley held the extreme position of subjective idealism, which, simply summarized, insisted that “to be is to be perceived” (esse est percipi). According to Berkeley, it makes no sense to believe in the existence of anything that we cannot experience.

Western Metaphysical Tradition

A lineage of philosophical inquiry in the West that deals with fundamental questions of existence, reality, and knowledge.

Most Real

This term is likely to refer to the philosophical notion of ultimate reality or truth, the most fundamental and true nature of existence as opposed to appearances or perceptions.

Plato

An ancient Greek philosopher, student of Socrates, and teacher of Aristotle, known for his contributions to philosophy, mathematics, and the concept of forms.