Question: Given a production function Yt AKt L , if A 0 (a) Calculate the steady-state level of capital and output. 3, L 27, K 0

Given a production function Yt AKt L , if A0

(a) Calculate the steady-state level of capital and output.

3, L 27,K0

8, s 0.2, and d 0.05:

(b) Calculate K1 , I1 , Y1 and C1.

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