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.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter7: Production And Growth

Section: Chapter Questions

Problem 5CQQ

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