Consider the Human Capital Accumulation model with a production function given by Y = AK0.5 H0.5, saving rates sk 0.16 and SH 0.09, a common depreciation rate is 8 = 0.05 and A 1. Which of the following is false? = = the long-run intensity of human capital relative to physical capital will fall when the long run growth rate of physical capital will fall when SH falls the long-run intensity of human capital relative to physical capital is 9/16 the long-run growth rate of physical capital is 0.12 SH falls

Consider the Human Capital Accumulation model with a production function given by Y = AK0.5 H0.5, saving rates sk 0.16 and SH 0.09, a common depreciation rate is 8 = 0.05 and A 1. Which of the following is false? = = the long-run intensity of human capital relative to physical capital will fall when the long run growth rate of physical capital will fall when SH falls the long-run intensity of human capital relative to physical capital is 9/16 the long-run growth rate of physical capital is 0.12 SH falls

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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