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Freelandia behaves according to Baby Solow. In Freelandia, the savings rate is always 40% of GDP, the depreciation rate is always 10% of the capital
Freelandia behaves according to Baby Solow. In Freelandia, the savings rate is always 40% of GDP, the depreciation rate is always 10% of the capital stock, and the production function is Y = K0.2. What is the steady-state capital output ratio in Freelandia? Answer with a number between 0 and 10
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Microeconomics
Authors: David Besanko, Ronald Braeutigam
5th edition
1118572270, 978-1118799062, 1118799062, 978-1118572276
