If the Steady-State Capital-Labor Ratio Is Equal to the Golden

question 84

Multiple Choice

If the steady-state capital-labor ratio is equal to the Golden Rule capital-labor ratio,then in the steady state

• A)output per worker equals investment per worker.
• B)output per worker equals depreciation per worker.
• C)investment per worker is as large as possible.
• D)consumption per worker is as large as possible.

---

Definitions:

Economic Fluctuations

Variations in the level of economic activity in an economy over a period of time, including phases of expansion and contraction.

Business Cycle

The fluctuations in economic activity that an economy experiences over a period of time, characterized by periods of expansion (growth) and contraction (recession).

Recessions

Intervals of provisional economic contraction, during which commerce and industry slow down, often indicated by a dip in GDP across two sequential quarters.

Real GDP

The measure of a country's economic output adjusted for price changes (inflation or deflation), reflecting the true value of goods and services produced.