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Y5 QUESTION 15 Consider the following Solow growth model. F(K,N)=K^0.5'N'D.5, with d 0.1, s=0.2, n=0.01, and z=1. Solve this for the steady state capital stock
Y5
QUESTION 15 Consider the following Solow growth model. F(K,N)=K^0.5'N'D.5, with d 0.1, s=0.2, n=0.01, and z=1. Solve this for the steady state capital stock per capita k'. Let's call this time period 0. Next assume that the savings rate increases to s=0.4 al time (=D. Calculate the capital stock per capita a thousand periods later at 1=1000. (Hint: Chock equation 7-19 in the book) QUESTION 16 10 points (E Consider the following Solow growth model. F(KN)=K^0.5'N^0.5, withd=0.1, s=0.2, n=0.01, and z=1, What is the golden rule capital stock per capita? (Hint: The golden rule level of capital stock maximizes the per capita consumption level c); Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save A O Search D A ClearStep by Step Solution
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