QUESTION 23
Suppose the investment rate is y (gamma) = 0.2 (20%), the depreciation rate is \(\delta = 0.008\) (0.8%), and population growth rate is n
= 0.05 (5%). If the economy uses a Cobb-Douglas production function, with \(a = 1/2\), and a productivity factor of 1 (i.e., A = 1).
Steady state output per worker is:
a. 3.45
b. 4.00
c. 4.55
d. 5.50
e. no answer is correct
QUESTION 24
Suppose the Investment rate is y (gamma) = 0.2 (20%), the depreciation rate is \(\delta = 0.008\) (0.8%), and population growth rate is n
= 0.05 (5%). If the economy uses a Cobb-Douglas production function, with \(a = 1/2\), and a productivity factor of 1 (i.e., A = 1).
Steady state capital per worker is:
a. 5.50
b. 11.89
c. 26.00
d. 62.5
e. no answer is correct
