Question: Time is discrete. Consider a classical economy has production function 9+ = 3k0.5, where qt and k are the output and the capital stock at

Time is discrete. Consider a classical economy has production function 9+

Time is discrete. Consider a classical economy has production function 9+ = 3k0.5, where qt and k are the output and the capital stock at time t. respectively. At any point in time, a proportion s = 0.4 of the output is saved and accumulated to the capital of the next period. The capital depreciates at an annual rate 8 = 0.05. The capital stock today is 274. Calculate the stock 23 years ago. Round your result to the nearest 3-digit. Answer: Time is discrete. Consider a classical economy has production function 9+ = 3k0.5, where qt and k are the output and the capital stock at time t. respectively. At any point in time, a proportion s = 0.4 of the output is saved and accumulated to the capital of the next period. The capital depreciates at an annual rate 8 = 0.05. The capital stock today is 274. Calculate the stock 23 years ago. Round your result to the nearest 3-digit

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