Assume that the production function for a country is given by Y = √K and annual investment is given by the function I=yxY where y = 0.3100, and that the yearly depreciation rate is 5.167%. 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

Assume that the production function for a country is given by Y = √K and annual investment is given by the function I=yxY where y = 0.3100, and that the yearly depreciation rate is 5.167%. 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

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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