The Initial Steady-State Level of Capital Per Worker in Macroland

question 30

Essay

The initial steady-state level of capital per worker in Macroland is 5. The Golden Rule level of capital per worker in Macroland is 8.
a. What must change in Macroland to achieve the Golden Rule steady state?
b. Why might the Golden Rule steady state be preferred to the initial steady state?
c. Why might some current workers in Macroland prefer the initial steady state to the Golden Rule steady state?

---

Definitions:

Conduct

The manner in which a person behaves, especially on a professional or business level.

Managers

Individuals who take responsibility for directing the activities within a part of an organization, overseeing employees, and making strategic decisions.

Adjourning Stage

The final phase in group development where the group wraps up activities and the members go their separate ways.

Celebratory

Pertaining to or involving activities done in honor of an event or achievement.