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Question 3

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The next questions refer to the following.
Consider an economy with the production function The next questions refer to the following. Consider an economy with the production function , a depreciation rate of 5%, a saving and investing rate of 10%, and no labor growth. -Each year in this economy, A) output is 20,000 and consumption is 18,000 B) output is 100,000 and consumption is 95,000 C) output is 50,000 and consumption is 1,000 D) output is 10,000 and consumption is 9,000 E) output is 25,000 and consumption is 10,000 , a depreciation rate of 5%, a saving and investing rate of 10%, and no labor growth.
-Each year in this economy,


A) output is 20,000 and consumption is 18,000
B) output is 100,000 and consumption is 95,000
C) output is 50,000 and consumption is 1,000
D) output is 10,000 and consumption is 9,000
E) output is 25,000 and consumption is 10,000

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