Question
T he Golden Rule of Capital in the Solow Growth Model is
that level of steady-state capital per worker where, I. Output per worker is maximized. II. Consumption per worker is maximized. III. The economy has the optimal saving rate, sgold.Solution
Statements II and III are correct. Golden Rule of Capital in the Solow Growth Model is that level of steady-state capital per worker where, Consumption per worker is maximized and the economy has the optimal saving rate, sgold.
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