This is from Central Bank of Turkey's recriutment questions in 2015. Let the production function be:...

 

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This is from Central Bank of Turkey's recriutment questions in 2015. Let the production function be: and capital's law of motion is dk dt where s is the saving rate, and d = what s? Y = K¹/2 =SxY-dx K 0.05 is the depreciation rate. If K = 9 in the long run, then Assume that the production technology in Turkey is Cobb-Douglas: Y = AK* L¹ and all markets are perfectly competitive. Moreover, labor share in Turkey is 40%. Based on these observations, Mr. Boncuk, an economist, argues that a = 0.4. Explain whether Mr. Boncuk is right or wrong. This is from Central Bank of Turkey's recriutment questions in 2015. Let the production function be: and capital's law of motion is dk dt where s is the saving rate, and d = what s? Y = K¹/2 =SxY-dx K 0.05 is the depreciation rate. If K = 9 in the long run, then Assume that the production technology in Turkey is Cobb-Douglas: Y = AK* L¹ and all markets are perfectly competitive. Moreover, labor share in Turkey is 40%. Based on these observations, Mr. Boncuk, an economist, argues that a = 0.4. Explain whether Mr. Boncuk is right or wrong.

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In the scenario provided Mr Boncuk argues that the value of alpha in the CobbDouglas production func... View the full answer