Q9. Assume a closed economy in 1980. Suppose that the investment-output ratio () is0.25, depreciation rate is 5%, labour force growth is 3%, and that capital and output perworker are 3000 and 1000, respectively. Use the Solow growth model to compute the valueof capital per worker in 1981.

The Solow growth model is an alternative to the Harrod-Domar (H-D) growth model. The Solow growth…

Assume a closed economy in 1980. Suppose that the investment-output ratio () is lepreciation rate is 5%, labour force growth is 3%, and that capital and output per are 3000 and 1000, respectively. Use the Solow growth model to compute the value tal per worker in 1981.

Assume a closed economy in 1980. Suppose that the investment-output ratio () is lepreciation rate is 5%, labour force growth is 3%, and that capital and output per are 3000 and 1000, respectively. Use the Solow growth model to compute the value tal per worker in 1981.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Good Evening My name is Helen here's the problem A country is described by the solow model, with production function of y=k1/2, Suppose that k is equal to 400. The fraction of output invested is 50%. the depreciation is 5%. Is the country at its steady-state level of output per worker, above the steady state, or below the steady state? Show how you reached your conclusion.
Please give me only correct answer then i will give u position response Thanks
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