2. Suppose the A is 50, Capital's share of income is 30%, the savings rate is 25%, and the depreciation rateis 10%. Further, assume that the inital level (t = 0) of capital is 10.Calculate k for periods 1 through 100.3. Calculate Yt, Cr, ių for the periods 1 through 100.4. Graph the time series k4, Yt, Ct, i¿ for the periods 1 through 100.5. Is this economy following the golden rule by maximizing steady state consumption per worker? If not,should it save more or less? Please include this written portion in the spreadsheet.

The formula for capital accumulation in the Solow growth model with no technological progress can be…

2. Suppose the A is 50, Capital's share of income is 30%, the savings rate is 25%, and the depreciation rate is 10%. Further, assume that the inital level (t = 0) of capital is 10. Calculate k for periods 1 through 100. 3. Calculate yt. C, it for the periods 1 through 100

2. Suppose the A is 50, Capital's share of income is 30%, the savings rate is 25%, and the depreciation rate is 10%. Further, assume that the inital level (t = 0) of capital is 10. Calculate k for periods 1 through 100. 3. Calculate yt. C, it for the periods 1 through 100

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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