A Productivity Improvement Raises Steady-State Output and Consumption Per Worker

question 66

Multiple Choice

A productivity improvement raises steady-state output and consumption per worker in all the ways given below except

• A)it increases the amount that can be produced at any given capital-labour ratio.
• B)it decreases the depreciation rate of capital.
• C)it causes the steady-state capital-labour ratio to rise.
• D)it causes saving per worker to rise.

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