Byblostan economy has the following facts: 1. k = 1.5 y (the capital stock is about 1.5 times one year's GDP) 2. d k = 0.15 y (about 15% of GDP is used to replace depreciating capital) 3. MPK k = 0.2 y (capital income is about 20% of GDP) a. The administrators in Byblostan want to know how far their economy from the Golden Rule knowing that their real output growth rate is 4%. b. Discuss only two policies that the government in Byblostan should adopt which may lead their economy reach the Golden rule in the long run. "Devoting a larger share of national output to investment would help restore rapid production growth and rising living standards" Do you agree with this claim? Explain please do not provide an answer already on chegg Q&A

Byblostan economy has the following facts: 1. k = 1.5 y (the capital stock is about 1.5 times one year's GDP) 2. d k = 0.15 y (about 15% of GDP is used to replace depreciating capital) 3. MPK k = 0.2 y (capital income is about 20% of GDP) a. The administrators in Byblostan want to know how far their economy from the Golden Rule knowing that their real output growth rate is 4%. b. Discuss only two policies that the government in Byblostan should adopt which may lead their economy reach the Golden rule in the long run. "Devoting a larger share of national output to investment would help restore rapid production growth and rising living standards" Do you agree with this claim? Explain please do not provide an answer already on chegg Q&A

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter20: Economic Growth In The Global Economy

Section: Chapter Questions

Problem 4P

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