Question
Given that the deprecation rate is 10% and investment rate is 25%. What is the steady state level of capital and output for each these
Given that the deprecation rate is 10% and investment rate is 25%. What is the steady state level of capital and output for each these three countries
Y=5
Ilia:K= 100 machines
Caplania:K= 10,000 machines
Hansonia:K= 1,000,000 machines
GDP:
Ilia________50__________________
Caplania_____500_______________
Hansonia_______5000_____________
Savings:
Ilia_______12.5___________________
Caplania______125______________
Hansonia______1250______________
10% of all machines become worthless every year (they depreciate, in other words), then how many machines will become worthless in these three countries this year?
Ilia__________90________________
Caplania______1000______________
Hansonia_______100,000_____________
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