Question
Economy R has a per-worker production function of 40k (40 times the square root of k). Note that the MPK for this production function can
Economy R has a per-worker production function of 40k (40 times the square root of k). Note that the MPK for this production function can be written a variety of ways, 20k and 20k12 among them. Capital depreciates at a steady rate, at a rate of 10% per year. Citizens consume 80% of their income, saving the rest. This economy has no population growth or increases in technology or human capital over time.
Below is the table for Economy R:
k | y | c | i | k | k |
6400 | a | b | c | d | e |
Enter the value for Cell a, carefully following all numeric directions.
Enter the value for Cell b, carefully following all numeric directions.
Enter the value for Cell c, carefully following all numeric directions.
Enter the value for Cell d, carefully following all numeric directions.
Enter the value for Cell e, carefully following all numeric directions.
6400 units of capital per worker [ Select ] ["is not", "is"] the steady state value because new capital per worker added by the firm is [ Select ] ["the same as our marginal propensity to invest", "zero", "equal to capital per worker lost to depreciation", "equal to the depreciation rate"] .
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