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The economy of Solovia is described by the Solow model with population growth and technological progress. The production function is = K}'?{EL)'?. The saving rate
The economy of Solovia is described by the Solow model with population growth and technological progress. The production function is = K}'?{EL)\"'?. The saving rate s is 30 percent, the rate of population growth n is 3 percent, the rate of technological progress g is 2 percent, and the rate of depreciation is 5 percent. Calculate the steady-state values of 1. The capital-output ratio K/Y. 2. Capital per effective unit of labor k = KAEL). 3. The growth rate of output Y. 4. The growth rate of output per worker /L. 5. The growth rate of the marginal product of capital MPK. 6. The growth rate of the marginal product of labor MPL. a. The capital-output ratio is K/Y |:| b. Capital per effective unit of labor k = KAEL) |:| . The growth rate of output |:| percent. d. The growth rate of /L |:| percent. . The growth rate of MPK |:| percent. f. The growth rate of MPL |:| percent
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