Consider a basic Solow–Swan model with constant labour force L and constant total factor productivity A. Suppose the saving rate is s = 0.3 and the depreciation rate is ?δ = 0.1. Suppose also that steady-state output is 100. Which of the following is true? Group of answer choices - None of the other options - The steady state capital/output ratio is 2 - Steady state investment per worker is 40 - Steady state capital per worker is 1000
Consider a basic Solow–Swan model with constant labour force L and constant total factor productivity A. Suppose the saving rate is s = 0.3 and the depreciation rate is ?δ = 0.1. Suppose also that steady-state output is 100. Which of the following is true? Group of answer choices - None of the other options - The steady state capital/output ratio is 2 - Steady state investment per worker is 40 - Steady state capital per worker is 1000
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Consider a basic Solow–Swan model with constant labour force L and constant total factor productivity A. Suppose the saving rate is s = 0.3 and the
Group of answer choices
- None of the other options
- The steady state capital/output ratio is 2
- Steady state investment per worker is 40
- Steady state capital per worker is 1000
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