Suppose g(c)=c^5 where c=C/N. output per capita is given by y=zf(x) and f(x)=x^0.5 where x=L/N

a. what is the steady state land per capita when z=1

b. repeat for z=2. Explain how your answers relate to the persistent poverty of pre-industrial society?

c. Now suppose that due to improvements in health care, g(c)=2c^0.5. What happens to the steady-state consumption and population when z=1?

Answer rating: 100% (QA)

Econom ics suppose g c c 5 where c C N output per capita is given by y z f x and f x x 0 5 where x L ... View the full answer