During an economic shock, the level of output-per-capita went down. The citizens of the country were very happy with their previous, pre-shock level of output-per-capita. They would like to adjust their savings rate to maintain the same amount of output-per-capita post-shock as they had pre-shock. In the Solow diagram, please show how the country can change their savings rate to maintain their steady state level of output constant. Be precise.

Q&A Education