15.Consider a Solow-Swan model with saving rate s = 0.4, labour force growth gL = 0.05, constant productivity A = 1, and depreciation 86 = 0.05. If output per worker is y = Y/L = 200 and capital per worker is k = K/L = 800, which of the following is true? Group of answer choices 1.Effective depreciation per worker is 80, saving per worker is 60 and k will decrease towards the steady state 2.Effective depreciation per worker is 80, saving per worker is 80 and k is at the steady state 3.Effective depreciation per worker is 60, saving per worker is 80 and k will decrease towards the steady state 4.Effective depreciation per worker is 60, saving per worker is 80 and k will increase towards the steady state

15.Consider a Solow-Swan model with saving rate s = 0.4, labour force growth gL = 0.05, constant productivity A = 1, and depreciation 86 = 0.05. If output per worker is y = Y/L = 200 and capital per worker is k = K/L = 800, which of the following is true? Group of answer choices 1.Effective depreciation per worker is 80, saving per worker is 60 and k will decrease towards the steady state 2.Effective depreciation per worker is 80, saving per worker is 80 and k is at the steady state 3.Effective depreciation per worker is 60, saving per worker is 80 and k will decrease towards the steady state 4.Effective depreciation per worker is 60, saving per worker is 80 and k will increase towards the steady state

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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