Suppose Y = K¹/²,total Factor Productivity Is Constant and Equal

question 73

Multiple Choice

Suppose y = k¹/²,total factor productivity is constant and equal to 1,s = 0.40,and d = 0.10.When the economy reaches the steady state,consumption per worker is ________.

• A) $1.20
• B) $2.40
• C) $4.80
• D) $13.60

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Definitions:

New Consideration

Additional or different consideration offered in a contract, beyond what was initially agreed upon, often required for the enforcement of modifications or new agreements.

Doubled Production

A situation or outcome where the output or production of goods or services has increased by 100 percent.

State apparatus

The complex of institutions, bodies, and organizations through which a state exercises its power and authority.

Political economy

An interdisciplinary field that examines the relationship between politics and economics, focusing on how political institutions, the political environment, and the economic system influence each other.