Question
Say that the economy is in steady state. Assume now that the government implements an important educational program that makes college more accessible to the
Say that the economy is in steady state. Assume now that the government implements an important educational program that makes college more accessible to the population. As a result, productivity in the economy increases. The other parameters in the economy remain constant. Comparing the new steady state with the original steady state, you can claim that
investment per worker and consumption per worker have fallen
investment per worker and consumption per worker have risen
investment per worker has risen, but consumption per worker has fallen
investment per worker has fallen, but consumption per worker has risen
None of the above
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