Question: Consider the Basic Solow Model without exogenous growth: Y = AK^L^( 1 ) C =(1 s ) Y Y = C + I K =
Consider the Basic Solow Model without exogenous growth:
Y=AK^L^(1)
C=(1s)Y
Y=C+I
K=I+(1)K
where labor L is constant. Assume the following values for the rest of this question:
A=1000
=0.33
s=0.12
=0.09
L = 25
Compute steady state capital (aggregate, not per worker).
Compute steady state output (aggregate, not per worker).
Compute steady state consumption (aggregate, not per worker).
Compute steady state investment (aggregate, not per worker).
Round the answer to at least three decimal places.
Thank you!!
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