. SFacts (1) and (2) imply the following: K Ko const. y - ( * ) - ( 7 ) - 0 - KC
. SFacts (1) and (2) imply the following: K Ko const. y - ( * " ) - ( 7 ) - 0 - KC . SFacts (2) and (3) together imply the following: II I Y II K p = K - .K = = p. since K/Y is constant by S2 and p = II / K is also constant by S3 the income share of physical capital II / Y must also be constant. Given II + W = Y (hence II/ Y + W/Y = 1) by definition W/Y = 1-(II/Y)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
