Based on the notations used in class, let yk, 6-0.3, 8-0.45, n = 0.015, and k = 2 initially. Then suddenly the saving rate goes up to s' 0.5. Then the growth of steady-state capital per worker will be: - O a. 40% O b. None of the other choices are correct. O c. 50% O d. 30 % (

Based on the notations used in class, let yk, 6-0.3, 8-0.45, n = 0.015, and k = 2 initially. Then suddenly the saving rate goes up to s' 0.5. Then the growth of steady-state capital per worker will be: - O a. 40% O b. None of the other choices are correct. O c. 50% O d. 30 % (

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter20: Economic Growth

Section: Chapter Questions

Problem 5SCQ: What do the growth accounting studies conclude are the determinants of growth? Which is more...

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Question

Based on the notations used in class, let y=k06, 6-0.3, 8-0.45, n = 0.015, and k = 2
initially. Then suddenly the saving rate goes up to s' 0.5. Then the growth of steady-state
capital per worker will be:
O a. 40%
O b. None of the other choices are correct.
O c. 50%
O d. 30 %

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