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If Y = K1/2, the Country Saves 10 Percent of Its

Question 46

Multiple Choice

If y = k1/2, the country saves 10 percent of its output each year, and the steady-state level of capital per worker is 4, then the steady-state levels of output per worker and consumption per worker are:


A) 2 and 1.6, respectively.
B) 2 and 1.8, respectively.
C) 4 and 3.2, respectively.
D) 4 and 3.6, respectively.

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