Assume a Cobb-Douglas production with capital share 1/3; total factor productivity equal to 1, total population in an economy is equal to 1, depreciation rate is 5 percent and saving rate is 10 percent. Then the steady-state level of capital is about: О а. 1.3 O b. 0.3 о с. 0.8 O d. 2.8

Assume a Cobb-Douglas production with capital share 1/3; total factor productivity equal to 1, total population in an economy is equal to 1, depreciation rate is 5 percent and saving rate is 10 percent. Then the steady-state level of capital is about: О а. 1.3 O b. 0.3 о с. 0.8 O d. 2.8

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Assume a Cobb-Douglas production with capital share 1/3; total factor productivity equal to 1, total population in an economy is equal to 1,
depreciation rate is 5 percent and saving rate is 10 percent. Then the steady-state level of capital is about:
1.3
O b.
0.3
О с.
0.8
Od.
2.8
O e.
1.6

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