38. Suppose there are two countries that are identical in every way with the following exception. The saving rate in country A is greater than the saving rate in country B. Given this information, we know that in the long run: a. more information is needed to answer this question b. the growth rate of output per capita will be the same in the two countries c. the growth rate of output per capita will be greater in A than in B d. the growth rate of output per capita will be greater in B than in A
38. Suppose there are two countries that are identical in every way with the following exception. The saving rate in country A is greater than the saving rate in country B. Given this information, we know that in the long run: a. more information is needed to answer this question b. the growth rate of output per capita will be the same in the two countries c. the growth rate of output per capita will be greater in A than in B d. the growth rate of output per capita will be greater in B than in A
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:38. Suppose there are two countries that are identical in every way with the following exception. The saving rate in country A is
greater than the saving rate in country B. Given this information, we know that in the long run:
a. more information is needed to answer this question
b. the growth rate of output per capita will be the same in the two countries
c. the growth rate of output per capita will be greater in A than in B
d. the growth rate of output per capita will be greater in B than in A
QUESTION 39
39. In the long-run steady state, which of the following is affected by an economy's rate of saving?
a. output per worker.
b. capital per worker.
c. the level of investment
d. all of the above.
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