In a closed economy with no government, use the following information to compute the long run level of total consumption, not per-worker consumption You are given: The production function F(K,Lt)=K%L-a The share of national income paid to owners of capital: a=.4 The rate of depreciation: 8=.3 The rate of savings s .5 The initial capital stock Ko=1 The labor supply L=5 for all t> Do not round any intermediate calculations. Please give an exact answer. This question will accept any answer within 0.1 of the exact answer.

In a closed economy with no government, use the following information to compute the long run level of total consumption, not per-worker consumption You are given: The production function F(K,Lt)=K%L-a The share of national income paid to owners of capital: a=.4 The rate of depreciation: 8=.3 The rate of savings s .5 The initial capital stock Ko=1 The labor supply L=5 for all t> Do not round any intermediate calculations. Please give an exact answer. This question will accept any answer within 0.1 of the exact answer.

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter20: Exchange Rates And The Macroeconomy

Section: Chapter Questions

Problem 3TY

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