Consider a Malthusian model where the growth rate of population (L*) is given by: L* =...

 

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Consider a Malthusian model where the growth rate of population (L*) is given by: L* = (Y/L) - 54. Y is total income or GDP. L is labor. The GDP production function is Y = X 0.5 0.5 where X is land (X= 4,665,600). What is the Malthusian steady state value of L? Show your work. Consider a Malthusian model where the growth rate of population (L*) is given by: L* = (Y/L) - 54. Y is total income or GDP. L is labor. The GDP production function is Y = X 0.5 0.5 where X is land (X= 4,665,600). What is the Malthusian steady state value of L? Show your work.

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To find the steadystate value of L we need to find the value of L such that L 0 In other words we ... View the full answer