Question
Given a per capita production function of y= k^0.5, a savings rate of 10%, a depreciation rate of 2%, a technological growth rate of 1%,
Given a per capita production function of y= k^0.5, a savings rate of 10%, a depreciation rate of 2%, a technological growth rate of 1%, and a population growth of 3%, what is this economy's steady-state level of output per capita. In a sentence, describe over time what is happening to this economy's level of RGDP when the economy is in a steady-state.
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Introduction to Econometrics
Authors: James H. Stock, Mark W. Watson
3rd edition
133595420, 978-0138009007, 138009007, 978-0133486872, 133486877, 978-0133595420
