Question: Given a production function Y t ? b = a r ( A ) K t 1 3 b a r ( L ) 2

Given a production function Yt?b=ar(A)Kt13bar(L)23, if ?bar(A)=2,bar(L)=4,bar(s)=0.2, and ?bar(d)=0.05 :
a. Calculate the steady-state level of capital and output.
b. Which will have a bigger impact on the steady-state level of capital, an increase in A to 2,5 or an increase in s to 0.3?
Given a production function Y t ? b = a r ( A ) K

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