3. Use the following information to answer the questions below: (1) the rate of depreciation is 10% per year, (2) the population growth rate is 2% per year, and (3) the growth rate of technology is 3% per year. (a) The annual growth rate of "effective labor" in the steady state equals_ (b) The level of investment needed to maintain a constant capital stock ( K ) in this economy is xK.

3. Use the following information to answer the questions below: (1) the rate of depreciation is 10% per year, (2) the population growth rate is 2% per year, and (3) the growth rate of technology is 3% per year. (a) The annual growth rate of "effective labor" in the steady state equals_ (b) The level of investment needed to maintain a constant capital stock ( K ) in this economy is xK.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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