Question

The formula for steady-state consumption per worker (c*) as a function of output per worker and investment per worker is:_________

Answer 1

C= f(k) - dk*

The formula for steady-state consumption per worker (c*) as a function of output per worker and investment per worker is: c= f(k) - dk*. When an economy begins above the Golden Rule, reaching the Golden Rule: produces higher consumption at all times in the future.