Macroeconomics
13th Edition
ISBN: 9781337617390
Author: Roger A. Arnold
Publisher: Cengage Learning
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Chapter 17, Problem 3WNG
To determine
Relationship between production function and the long run
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Consider an economy with the following parameters:
a=0.5
s=0.4, savings/investment rate
d=0.04, rate of depreciation of capital
n=0.01, population growth rate
g=0.02, growth rate of A
h = 3, human capital
The economy is currently at steady-state and the value of A is equal to 1000. What is the value of output per worker y?
Enter your answer as the nearest whole number without commas.
Answer:
Consider an economy with the following parameters:
a=0.5
s=0.6, savings/investment rate
d=0.04, rate of depreciation of capital
n=0.02, population growth rate
g=0.03, growth rate of A
h = 3, human capital
The economy is currently at steady-state and the value of A is equal to 1000. What is the value of output per workery in 10 years from now?
Enter your answer as the nearest whole number without commas.
Answer:
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