High School

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There are two methods to determine the Golden Rule capital level by looking at the steady-state.

Please choose the correct answer from the following choices:

A. Consumption per worker or comparing the marginal product of capital to the saving rate.

B. Consumption or comparing the marginal product of capital to the depreciation rate.

C. Output per worker or comparing the marginal product of capital to the saving rate.

D. Output per worker or comparing the marginal product of capital to the depreciation rate.

Answer :

Answer:

consumption or comparing the marginal product of capital to the depreciation rate.


Explanation:

The two methods that measures the capital level of the golden rule is the consumption or it should compared the capital marginal product with the depreciation rate. As the golden rule capital level shows the leval in which the consumption made in the steady rate should be maximized

So for this the above option should be considered

Therefore the other options are wrong

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