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Consider a Solow growth model with the following production function: Y/L = 4(K/L) 0.5 where Y/L is per capita output, K/L is capital per capita,
Consider a Solow growth model with the following production function: Y/L = 4(K/L)0.5 where Y/L is per capita output, K/L is capital per capita, the savings rate is 0.30, the population growth rate is 0.05 and the depreciation rate is 0.10. Calculate the steady-state level of K/L.
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