If the economy is in a steady state, then:

A. Consumption per worker is decreasing, but capital per worker is constant.
B. Both consumption per worker and capital per worker are constant.
C. Consumption per worker is constant, but capital per worker is decreasing.
D. Both consumption per worker and capital per worker are decreasing.

In a steady-state economy, both consumption per worker and capital per worker are constant. This condition is governed by the Growth of GDP matching the population growth, supported by the concept of capital deepening.

Explanation:

In an economy that is in a steady state, both consumption per worker and capital per worker are constant. This happens when the growth of Gross Domestic Product (GDP) matches the population growth. Capital deepening refers to the rise in capital per worker which results from increased levels of human or physical capital. This increase, combined with technological advancements and a favorable economic environment, contributes to the steady growth of GDP per capita. However, if the population grows faster than GDP, then GDP per capita can decrease. Similarly, if GDP falls but the population falls more rapidly, GDP per capita can increase.

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