An increase in pollution has caused a permanent increase in the rate of capital depreciation. This would cause:
a. an increase in the steady state capital per worker.
b. steady state output per worker to fall.
c. a decline in steady state consumption per worker.
d. capital per worker to be unaffected.
AnswerOption bb. steady-state output per worker to fallThe increase in the capital depreciation falls the output ... See the full answer