Consider a Solow economy with a production function F (K, L) = Kª L¹-ª, where a = 0.5. The labor force is L = 1.The supply of capital at time zero is Ko = 68. The saving rate is s = 0.5. The depreciation rate is d = 0.6. At time t = 1, the stock of capital in the economy will be K₁ Round your answers to 2 decimal places (for example, 3.454 should be rounded down to 3.45, and 3.455 should be rounded up to 3.46). 62.84

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Consider a Solow economy with a production
function F (K, L) = Ka L¹-a, where a = 0.5.
The labor force is L = 1.The supply of capital at
time zero is K₁ = 68. The saving rate is s = 0.5.
The depreciation rate is d = 0.6. At time t = 1, the
stock of capital in the economy will be K₁
Round your answers to 2 decimal places (for example,
3.454 should be rounded down to 3.45, and 3.455
should be rounded up to 3.46).
62.84
Transcribed Image Text:Consider a Solow economy with a production function F (K, L) = Ka L¹-a, where a = 0.5. The labor force is L = 1.The supply of capital at time zero is K₁ = 68. The saving rate is s = 0.5. The depreciation rate is d = 0.6. At time t = 1, the stock of capital in the economy will be K₁ Round your answers to 2 decimal places (for example, 3.454 should be rounded down to 3.45, and 3.455 should be rounded up to 3.46). 62.84
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