In the table above, what is the maximum amount of output that can be produced with two workers?

In the Keynesian model in the short run, the amount of employment is determined by the effective labor demand curve and the level of

A) prices. B) output. C) the real interest rate. D) the supply of labor.

On the diagram above, show the new steady-state capital-labor ratio that results from a decrease in the saving rate. Can you say what has happened to the equilibrium level of consumption per worker?

What will be an ideal response?