Suppose an Economy Is in a Steady State,then Its Saving

question 58

Multiple Choice

Suppose an economy is in a steady state,then its saving rate falls,once and permanently.As the economy approaches its new long-run steady state,consumption per worker is ________.

• A)falling
• B)rising
• C)unaffected
• D)either rising or falling

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Definitions:

General Journal

A basic accounting ledger that records all transactions of a business in chronological order, providing a detailed account.

Ethical Standards

Principled guidelines that govern the conduct of individuals and organizations, ensuring actions are morally right and fair.

General Journal

The bookkeeping record in which all types of transactions are recorded in chronological order before they are transferred to specific accounts in the ledger.

General Ledger

The comprehensive set of accounts that records all financial transactions of a business, serving as the central repository of accounting data.