Answer :
Final answer:
In this scenario, where capital per worker is greater than the Golden Rule level but smaller than the maximum level, consumption per worker is not at its maximum. However, it can be increased by further increasing capital per worker.
Explanation:
In this scenario, where capital per worker is greater than the Golden Rule level but smaller than the maximum level, consumption per worker is not at its maximum.
When capital per worker is above the Golden Rule level, it indicates that the economy is not investing enough in capital to reach the optimal level of long-term growth. As a result, consumption per worker is lower than it could be at the Golden Rule level.
However, since capital per worker is still below the maximum level, there is still room for further capital accumulation. This implies that consumption per worker can be increased by investing more in capital until the maximum level is reached.
Therefore, in this scenario, consumption per worker is not at its maximum, but it can be increased by further increasing capital per worker.
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