s = 0.3
In steady state, following relationship holds:
s / (d + n) = k / y
0.3 / (0.05 + 0.05) = k / 4k0.5
0.3 / 0.1 = k0.5 / 4
k0.5 = 1.2 / 0.1
k0.5 = 12
Squaring both sides,
k = 144.000
0.5 Suppose that an economy has the per-worker production function given as: Vt 4kt, where y...
Suppose that an economy has the per-worker production function given as: y = 4k., where y is output per worker and k is capital per worker. In addition, national savings is given as: S, = 0.10Y, where S is national savings and Y is total output. The depreciation rate is d = 0.10 and the population growth rate is n = 0.10. The steady-state value of the capital-labor ratio, kis 4.00. The steady-state value of output per worker, y is...
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0.5 , where y is output per worker and k Suppose that an economy has the per-worker production function given as: Y = 5k is capital per worker. In addition, national savings is given as: S = 0.1074, where S is national savings and Y is total output. The depreciation rate is d = 0.10 and the population growth rate is n = 0.10 The steady-state value of the capital-labor ratio, k is 6.25. The steady-state value of output per...
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