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
Chapter20: Economic Growth In The Global Economy
Section: Chapter Questions
Problem 4P
Related questions
Question
![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
%3|](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc448f289-a2f5-4084-bc16-daa424cd5fbe%2F749d2115-e12a-407b-97ee-fed455d7b30f%2Fz4jzwb_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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
%3|
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