A neo-classical growth economic with production function Y = K 1/2 (AL) 1/2 has a depreciation rate
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Question:
A neo-classical growth economic with production function Y = K1/2(AL)1/2 has a depreciation rate of 10 percent per year. The savings rate is 60 percent. The labour force grows at 20 percent per year and technological progress grows at 20 percent per year. Calculate steady state output per effective worker.
Be prepared to upload a diagram showing how output per effective worker would be affected the savings rate increased to 90 percent.
Related Book For
Foundations of Financial Management
ISBN: 978-1259194078
15th edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
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