Question
An economy has a per worker production function y=k^1/4, a marginal propensity to save of 24%, a population growth rate of 4%, and capital depreciates
An economy has a per worker production function y=k^1/4, a marginal propensity to save of 24%, a population growth rate of 4%, and capital depreciates at a rate of 2% each period. what is the steady state capital/worker ratio?
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y k 14 In steady state s d n k y where s ...
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Macroeconomics
Authors: Paul Krugman, Robin Wells, Iris Au, Jack Parkinson
3rd Canadian edition
1319120083, 1319120085, 1319190111, 9781319190118, 978-1319120054
