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The answer should be typed. Assume there is a permanent reduction in the saving rate What is the likely impact on the growth rate and
The answer should be typed.
Assume there is a permanent reduction in the saving rate What is the likely impact on the growth rate and the level of output per worker in the short run and in the long run? O A. The steady-state growth rate of output per worker will fall. The growth rate of output per worker falls in the short run, and in the long run it approaches the new, lower steady-state rate. O B. The steady-state growth rate of output per worker will rise. The growth rate of output per worker rises in the short run, and in the long run it approaches the higher steady-state rate. C. The steady-state growth rate of output per worker will fall. The growth rate of output per worker falls in the short run, but in the long run it approaches its original steady-state rate. O D. There is no effect on the steady-state growth rate of output per worker. The growth rate of output per worker falls in the short run, but in the long run it approaches its original steady-state rateStep by Step Solution
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