ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Assume that the per-worker production function is yt
=2kt 0.3. The saving, depreciation and population
growth rates are estimated at 0.3, 0.05 and 0.02,
respectively. (a) Calculate the capital - labour ratio
steady state for this economy. (b) Calculate
consumption per worker at the steady state.
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Transcribed Image Text:Assume that the per-worker production function is yt =2kt 0.3. The saving, depreciation and population growth rates are estimated at 0.3, 0.05 and 0.02, respectively. (a) Calculate the capital - labour ratio steady state for this economy. (b) Calculate consumption per worker at the steady state.
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