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Assume the economy is describe with the production function a.Does this production have constant returns to scale?How do you know? b. What is the per-worker
Assume the economy is describe with the production function
a.Does this production have constant returns to scale?How do you know?
b. What is the per-worker production function, y=f(k)
c. Assume that capital depreciates at a rate 5% per year and the country saves 10% of output each year.There is no population growth or technological change.Using the steady-state condition, find the steady-state level of capital per worker and income per worker.
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