Y - K"(LE) The economy has a capital share of 0.20, a saving rate of 45 percent, a depreciation rate of 3.75 percent, a rate of population growth of 5.00 percent, and a rate of labor-augmenting technological change of 3.5 percent. It is in steady state. b. Solve for capital per effective worker (k"), output per elffective worker (y"), and the marginal product of capital. k' - y* = marginal product of capital =

Question
Y - K"(LE)
The economy has a capital share of 0.20, a saving rate of 45 percent, a depreciation rate of 3.75 percent, a rate of population
growth of 5.00 percent, and a rate of labor-augmenting technological change of 3.5 percent. It is in steady state.
b. Solve for capital per effective worker (k"), output per elffective worker (y"), and the marginal product of capital.
k' -
y* =
marginal product of capital =

Image Transcription

Y - K"(LE) The economy has a capital share of 0.20, a saving rate of 45 percent, a depreciation rate of 3.75 percent, a rate of population growth of 5.00 percent, and a rate of labor-augmenting technological change of 3.5 percent. It is in steady state. b. Solve for capital per effective worker (k"), output per elffective worker (y"), and the marginal product of capital. k' - y* = marginal product of capital =

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