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PEA 2023Question 9mcqModerate

Demand-determined output. Workers receive share λY\lambda Y, capitalists (1λ)Y(1-\lambda)Y. Saving rates sws_w (workers) and scs_c (capitalists), with sw<scs_w<s_c. Investment Iˉ\bar I autonomous. If both scs_c and sws_w rise, in the new equilibrium: