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Consider the Basic Solow Model without exogenous growth: Y = AK^{alpha}L^{1-alpha} Y = AK^L^( 1 ) C = (1-s)Y Y = C + I K
Consider the Basic Solow Model without exogenous growth:
Y = AK^{\alpha}L^{1-\alpha}
Y=AK^L^(1)
C = (1-s)Y
Y = C + I
K =I+(1)K
where labor L
L is constant. Assume the following values for the rest of this question:
A = 1000
=0.33
s = 0.12
=0.09
L = 25
Compute steady state capital per worker
Compute steady state output per worker.
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