If an Economy Is in a Steady State with No

question 47

Multiple Choice

If an economy is in a steady state with no population growth or technological change and the marginal product of capital is less than the depreciation rate:

• A) the economy is following the Golden Rule.
• B) steady-state consumption per worker would be higher in a steady state with a lower saving rate.
• C) steady-state consumption per worker would be higher in a steady state with a higher saving rate.
• D) the depreciation rate should be decreased to achieve the Golden Rule level of consumption per worker.

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Definitions:

Identity Cohesion

The feeling of unity, continuity, and consistency in a person's identity over time despite various external changes.

Role Confusion

refers to Erikson's theory on the struggle to find one's own identity, where the individual may be unsure about themselves or their future.

Moratorium

A period of delay or suspension of activity; in psychology, it often refers to a stage of adolescent identity exploration.

Consistency

The quality of being uniform, reliable, or stable over time, often applied to a person's behavior or attitudes.