Assume a production function in the Solow model is given by AK,",A-Z- 1, the depreciation rate is 0.05, and the investment rate is 0.1. Then the steady-state level of capital is about: Select one: O a. 2.8 O b. 0.8 O c. 1.6 O d. 0.3

Assume a production function in the Solow model is given by AK,",A-Z- 1, the depreciation rate is 0.05, and the investment rate is 0.1. Then the steady-state level of capital is about: Select one: O a. 2.8 O b. 0.8 O c. 1.6 O d. 0.3

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

Assume a production function in the Solow model is given by= AK,"L, A-Z– 1, the depreciation rate is
0.05, and the investment rate is 0.1. Then the steady-state level of capital is about:
Select one:
O a.
2.8
O b. 0.8
1.6
O d. 0.3
O e.
1.3

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