11. Assuming no public capital investment, an increase in government employment causes the transition equation for private capital intensity to a. shift up b. shift down 0. remain the same d. shift up or down depending on the rate of taxation l2. Imagine an economy without a government with the following characteristics: A = 10, n = l, d = 0, N = 100, 1? = l / 2 , and a = 1 / 3 . The steady state value ofk for this economy is a. 2.020 b. 2.222 c. 3.012 d. 3.313 Government Investment 13. The presence of government capital the marginal product of private capital and the decline of the path of worker productivity growth in transition to the steady state. a. raises, steepens b. raises, attens c, lowers, steepens d. lowers, attens 14. If the Only government purchase is public employment, the transition equation for private capital intensity is a. kr+1=$(1G)Akfr (1. km =$(1a)Ak