Question
1. Assume an economy with no population growth and no technological change. The production function is Y=K1/3L2/3. The savings rate for this economy is .4
1. Assume an economy with no population growth and no technological change. The production function is Y=K1/3L2/3. The savings rate for this economy is .4 and the depreciation rate is .1. Find the following:
(a) The per-worker production function.
(b) k*
(c) y*
(d) c*
(e) i*
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Microeconomics
Authors: Roger A. Arnold
12th Edition
1285738306, 978-1285738307
