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

Question 106

Multiple Choice

If we define the saving rate as sˉ\bar { s } , output as F(Kt,Lˉ) F \left( K _ { t } , \bar { L } \right)
, and the depreciation rate as dˉ\bar { d }
, and if sˉF(K2,Lˉ) dˉKt=0\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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