A country is described by the Solow model, with a production function of y = k¹/³. Suppose that k is equal to 20. The fraction of output invested is 45%. The depreciation rate is 5%. What is the value of investment per worker when k = 20?

A country is described by the Solow model, with a production function of y = k¹/³. Suppose that k is equal to 20. The fraction of output invested is 45%. The depreciation rate is 5%. What is the value of investment per worker when k = 20?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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