How Would Each of the Following Changes Affect the Steady-State

question 9

Essay

How would each of the following changes affect the steady-state values of the capital-labour ratio,output per worker,and consumption per worker?
a.A change in the composition of the capital stock raises the depreciation rate.
b.A change in social norms lowers the population growth rate.
c.Government tax policies change to encourage a higher saving rate.
d.A supply shock reduces productivity sharply.

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Definitions:

Cortex

the outer layer of the cerebrum in the brain, involved in numerous high-level functions including thought, memory, and consciousness.

Rooting Reflex

The Rooting Reflex is an automatic movement response observed in infants, who naturally turn their head toward a touch on their cheek and open their mouth to 'root' in the direction of the touching object, typically for breastfeeding.

Moro

A primitive reflex seen in newborn infants, characterized by spreading the arms, pulling the arms in, and usually crying, in response to a sensation of falling.

Grasping

A reflex apparent in infants that involves closing the fingers around an object placed in the hand, indicative of developmental stages and neurological function.