Question: Consider the following economy. The production function is (, ) = 0.4()0.6 . The saving rate and the depreciation rate are respectively: = 0.20 and

Consider the following economy. The production function is (, ) = 0.4()0.6 . The saving rate and the depreciation rate are respectively: = 0.20 and = 0.05. There is no population growth. The growth rate of technological progress is 2%, i.e. = 0.02

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