Question: help me understand this problem QUESTION 19 The United States and the U.K have both grown at about 2 percent per year for the last

help me understand this problem

help me understand this problem QUESTION 19 The United States and the

QUESTION 19 The United States and the U.K have both grown at about 2 percent per year for the last 60 years. By the principle of transition dynamics from the Neoclassical growth model this implies that O Both countries are below their steady states. O Both countries are above their steady states. Both countries are at their steady states @ It implies nothing because transition dynamics only tells us how an economy moves over time Both countries are changing their steady states. QUESTION 20 In the Neoclassical growth model, the long run effect of an increase in saving ori the growth race is eventually zero.What is the explanation for this? The production function exhibits diminishing returns to capital. The capital stock depreciates at a constant fate. Of Eventually. investment generated is equal tothe amount of capital depreciated! The impact falls over time: All of the above choices are correct

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