3). Let's consider the Solow Model without technology advancement. Y()=2K(t)^(1/2)*LE)^(1/2) The population growth rate=0.02 Capital accumulation is s*Y(t)-d*K_ s=0.2, d=0.03 d is the capital depreciation rate. In the steady state, please calculate the following measurements. (b)Marginal product of capital (Hint: The first derivative of Y with respect to K) А. 1 В. 1/2 С. 14 D. 1/8 E. 1/16 F. None of the above

3). Let's consider the Solow Model without technology advancement. Y()=2K(t)^(1/2)LE)^(1/2) The population growth rate=0.02 Capital accumulation is sY(t)-d*K_ s=0.2, d=0.03 d is the capital depreciation rate. In the steady state, please calculate the following measurements. (b)Marginal product of capital (Hint: The first derivative of Y with respect to K) А. 1 В. 1/2 С. 14 D. 1/8 E. 1/16 F. None of the above

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

3). Let's consider the Solow Model without technology advancement.
Y(t)=2K(t)^(1/2)*L(t)^(1/2)
The population growth rate=0.02
Capital accumulation is s*Y(t)-d*K_
s=0.2, d=0.03
d is the capital depreciation rate. In the steady state, please calculate the following
measurements.
(b)Marginal product of capital (Hint: The first derivative of Y with respect to K)
А. 1
В. 1/2
С. 1/4
D. 1/8
E. 1/16
F. None of the above

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