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Assume that the production function in an economy is given by y= k^1/2 where y and k are the per worker levels of output and
Assume that the production function in an economy is given by y= k^1/2 where y and k are the per worker levels of output and capital, respectively. The saving rate is given by s=.2, the rate of depreciation is .1 and the population growth rate is .05 What is the golden rule level of k?
A. 11.11
B. 10
C. 9.83
D. 12.5
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