If the capital stock per worker is greater than the steady-state capital stock per worker, then the change in capital is:positive; consumption decreases over time, and so does investment.positive; consumption increases over time, and so does output.negative; investment increases over time, but depreciation increases.negative; consumption decreases over time, and so does output.

Suppose that the per-worker production function y = f(k) = k0.5, that the saving rate is s = 0.2, and that the depreciation rate is δ = 0.02. If k = 49, then the capital stock per worker will:be impossible to compute given then information available.remain the same.decrease.increase.

In the Solow model, what effect does an increase in the depreciation rate have on the steady-state capital stock?  A. It decreases the steady-state capital stock  B. It increases the steady-state capital stock  C. It has no effect on the steady-state capital stock  D. It depends on the initial level of capital stock

Suppose that the capital stock grows faster than the labor force, and there is no technological growth. This would causeResponsesA an upward shift of the productivity curve.an upward shift of the productivity curve.B an upward movement along the productivity curve.an upward movement along the productivity curve.C a downward shift of the productivity curve.a downward shift of the productivity curve.D a downward movement along the productivity curve.

Suppose that the saving rate for an economy is 0.75, the level of per capita capital stock is 80, the rate of depreciation is 0.02 and the rate of population growth is 0.04. What is the level of per capita income if this economy is in steady state?

Suppose an economy is described by the Solow model. In this economy, the saving rate is 0.15, the depreciation rate is 0.1, the population growth rate is 0.02, and the rate of technological progress is 0.05. The economy is in a steady state. If the marginal product of capital at the steady state is 0.07, then:A.the economy has more capital than at the Golden Rule steady state.B.the economy has less capital than at the Golden Rule steady state.C.the economy could have more or less capital than at the Golden Rule steady state.D.an increase in the saving rate will increase steady-state consumption per effective worker.