Question
A small country has an aggregate production function with a constant number of labor hours given by Y = K1/2. Its depreciation rate is 4%
A small country has an aggregate production function with a constant number of labor hours given by Y = K1/2. Its depreciation rate is 4% and its investment rate is 10%. What is its steady state level of capital stock?
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Microeconomics
Authors: Robert S. Pindyck, Daniel L. Rubinfeld
7th edition
8131725995, 8131725993, 978-8131725993
