Question
Suppose a country's production function is =(12)Y=A(K12). A= 3, the capital depreciation rate = 0.02, and the savings rate = 0.1. If Aincreases from 3
Suppose a country's production function is =(12)Y=A(K12). A= 3, the capital depreciation rate = 0.02, and the savings rate = 0.1. If Aincreases from 3 to 3.2, the steady-state stock of capital goes from _____ to _____.
256; 306.25
225; 289
256; 289
225; 256
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Modern Principles of Economics
Authors: Tyler Cowen, Alex Tabarrok
3rd edition
1429278390, 978-1429278416, 1429278412, 978-1429278393
