2) Consider an economy with depreciation 6=.2, saving rate s = .1. Worker productivity grows atrate g = .1. The economy starts with 5 units of capital per worker. The productivity function isgiven by: 2tnioq S) m6x9 grit no bazzim 230 2 2 190f(k) = 3* k1/3(1916978 zi 19verlɔirlwhow to two lapiolandotdwong noitsluqoq TUOHTIW lebom wolo2011 (The Marginal Product of capital is therefore1000379501ritwong ytivitoub1910 190 stign.6MPK = 3* know 19q gniv brs (19)a. Using the above parameters, what is the golden rule steady state capital per (effective)worker? Please show your work below.

The golden rule means such level of capital per worker where the consumption is maximized. The…

Consider an economy with depreciation 6=.2, saving rate s = .1. Worker productivity grows atx3 rate g = .1. The economy starts with 5 units of capital per worker. The productivity function is given by: 21nioq S) msx9 9rit no bezzim 21nioq 9r1 to 2 xosd m69 of themngi226 2irl1 919lqmo f(k) = 3* k1/3 (191691 zi 19rlǝirlw how to two legolandet ditwong noitsluqoq TUOHTIW lebom wolo2 91 The Marginal Product of capital is therefore 357959 a. Using the above p 19h ritwong ytivitoub 199 stignit 6 10.6 MPK=3k-2/3 190 13how 19q gnivs2 bns,19жhow golden rule steady state capital per (effective)

Consider an economy with depreciation 6=.2, saving rate s = .1. Worker productivity grows atx3 rate g = .1. The economy starts with 5 units of capital per worker. The productivity function is given by: 21nioq S) msx9 9rit no bezzim 21nioq 9r1 to 2 xosd m69 of themngi226 2irl1 919lqmo f(k) = 3* k1/3 (191691 zi 19rlǝirlw how to two legolandet ditwong noitsluqoq TUOHTIW lebom wolo2 91 The Marginal Product of capital is therefore 357959 a. Using the above p 19h ritwong ytivitoub 199 stignit 6 10.6 MPK=3k-2/3 190 13how 19q gnivs2 bns,19жhow golden rule steady state capital per (effective)

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter20: Economic Growth

Section: Chapter Questions

Problem 12SCQ: Why dues productivity growth in high-income economies not slow down as it runs into diminishing...

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