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Now consider the basic Solow model covered in class. Assume that Country A has a production function as following. Y = AW? Where A represents
Now consider the basic Solow model covered in class. Assume that Country A has a production function as following. Y = AW? Where A represents the technology available in the country and K the aggregate capital. Let the national saving rate be equal to 30%, s = 0.3. Also, assume that capital depreciates at a constant rate of 3%, 6 = 0.03. 0.1.1 For this question, assume A=1. According to the basic Solow model we learned in class, what is the steady state level of capital and output
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