Question
Suppose that the production function is y = K^0.5. The savings rate is 10% (s = 0.1), the depreciation rate is 10% (d = 0.1),
Suppose that the production function is y = K^0.5. The savings rate is 10% (s = 0.1), the depreciation rate is 10% (d = 0.1), the population growth rate is 2% (n = 0.02), and the growth rate of worker productivity is 5% (g = 0.05). What is the steady state level of capital?
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Forecasting for Economics and Business
Authors: Gloria Gonzalez Rivera
1st edition
131474936, 978-1315510415, 1315510413, 978-0131474932
