Question 6. The Solow model In an economy, there are L = 16 workers and their productivity is A = 0.04. People save s = 0.35 of their income. The production function is Y = √√√L. The depreciation rate is 8 = 0.04 (a) Currently, there is Ko = 64.33. Find the output, the investment, the consumption, and the next year's capital. (b) Write down the steady state condition. Find the steady state capital, output, investment, and

Question 6. The Solow model In an economy, there are L = 16 workers and their productivity is A = 0.04. People save s = 0.35 of their income. The production function is Y = √√√L. The depreciation rate is 8 = 0.04 (a) Currently, there is Ko = 64.33. Find the output, the investment, the consumption, and the next year's capital. (b) Write down the steady state condition. Find the steady state capital, output, investment, and

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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