Answer :
Final answer:
When the capital stock per worker is lower than the steady-state capital stock per worker, the capital stock per worker will increase.
Explanation:
When the capital stock per worker is lower than the steady-state capital stock per worker, the capital stock per worker will increase.
In a steady-state economy, the capital stock per worker remains constant over time. If the capital stock per worker is lower, it means that the economy is not in a steady-state yet and needs to increase its capital stock to reach that state.
For example, if a country has fewer machines, equipment, and infrastructure per worker compared to the optimal level, it will need to invest in these resources to increase the capital stock per worker and improve productivity.
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