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A developing country's production function is given by Y = AKL, where Y is total output, A measures the contribution of secondary factors of
A developing country's production function is given by Y = AKL, where Y is total output, A measures the contribution of secondary factors of production to national output, K is total capital in the economy and L is the total amount of labour. Initially, assume that A = 2, the depreciation rate is 4%, the population growth rate is 2% and the saving rate is 80%. The per-person steady state output for this economy is places). The per-person steady state saving for this economy is places) The per-person steady state capital for this economy is places) The new per-person steady state output for this economy is The new per-person steady state saving for this economy is (round to 2 decimal As this country becomes more developed, its savings rate and population growth rate decline to 50% and 1% respectively. All other values remain unchanged. The new per-person steady state capital for this economy is . (round to 2 decimal (round to 2 decimal
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