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

Question 16

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 δ) :


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

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