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Chapter 7, Solow Model Example Given: PF = Y/L = 3 (K/L) 0.5 S (MPS) = 0.30 d = 0.10 n = 0.05 (pop growth
Chapter 7, Solow Model Example Given: PF = Y/L = 3 (K/L) 0.5 S (MPS) = 0.30 d = 0.10 n = 0.05 (pop growth = LF growth) A) Solve for SS equil b ) The savings rate increases to 0.40 c) The pop growth rate increases to 0.08
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