Assume that the production function for a country is given by = √K and annual investment is given by the function Y = I=Y XY where y = 0.270, and that the yearly depreciation rate is 4.50%. Suppose that this year, the output in the country is 1, and a neighbor country's output is 50% higher. Calculate the time it would take for the country's output to catch up with its neighbor's output. Assume the neighbor country's economy is neither growing nor shrinking. years
Hello I need help to find the answer for my econ 101 hw for a question as follows:
Assume that the production function for a country is given by
?=√K
and annual investment is given by the function
?=?×?
where γ=0.270, and that the yearly
Suppose that this year, the output in the country is 1, and a neighbor country's output is 50% higher. Calculate the time it would take for the country's output to catch up with its neighbor's output. Assume the neighbor country's economy is neither growing nor shrinking.
I will be also attaching the original problem for your reference as I just need to find the time that it would take the country's output to catch up with its neighbor's output. Thank You and please refer to the image to further assist with the question that I want answered.
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