If We Define the Saving Rate As $\bar { s }$

question 106

Multiple Choice

If we define the saving rate as $\bar { s }$ , output as $F \left( K _ { t } , \bar { L } \right)$
, and the depreciation rate as $\bar { d }$
, and if $\bar { s } F \left( K _ { 2 } , \bar { L } \right) - \bar { d } K _ { t } = 0$
, the economy is:

• A) contracting
• B) growing
• C) at the steady state
• D) in its short-run equilibrium
• E) None of these answers are correct.

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Definitions:

Natural Monopolies

A market condition where due to high infrastructure costs or significant barriers to entry, a single company can supply a product or service more efficiently than multiple competing firms.

Government Regulation

The establishment of rules and laws by government bodies that are intended to control or govern conduct and practices within various sectors.

Price Discrimination

A pricing approach in which the same provider sells the same or nearly the same products or services for different prices in distinct markets or to various customers.