In a Steady-State Economy with a Saving Rate S, Population $\delta$

question 5

Multiple Choice

In a steady-state economy with a saving rate s, population growth n, and labor-augmenting technological progress g, the formula for the steady-state ratio of capital per effective worker (k*) , in terms of output per effective worker (f(k*) ) , is (denoting the depreciation rate by $\delta$ ) :

• A) sf(k)/(\(\delta\) + n + g).
• B) s/((f(k))( \(\delta\) + n + g)).
• C) f(k)/((s)( \(\delta\) + n + g)).
• D) (s - f(k))/( \(\delta\) + n + g).

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