Consider a Solow growth model with the formulation 6 = 0.0175 investment = 0.192√K Y = 0.384√/K. Where & is the rate of depreciation. K is level of capital, and Y is the level of output. Adjust the line labeled Depreciation and the function labeled Investment to be consistent with the given model. Investment, depreciation, and output 50 45 40 3.5 3.0 25 20 15 1.0 05 0.0 0 20 40 60 Y Depreciation vestment 80 100 120 100 160 180 200 Capital (K)

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Consider a Solow growth model with the formulation
investment = 0.192√/K
Y = 0.384√/K,
Where & is the rate of depreciation, K is level of capital, and Y is the level of output.
Adjust the line labeled Depreciation and the function labeled Investment to be consistent with the given model.
8 =
Investment, depreciation, and output
5.0
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
05
0.0175
0.0
0
20 40
What is the steady-state level of capital?
steady-state level of capital:
60 80 100 120 140 160
Capital (K)
steady-state output:
Depreciation
Show Transcribed Text
What is the steady-state output?
vestment
160 160 200
Transcribed Image Text:Consider a Solow growth model with the formulation investment = 0.192√/K Y = 0.384√/K, Where & is the rate of depreciation, K is level of capital, and Y is the level of output. Adjust the line labeled Depreciation and the function labeled Investment to be consistent with the given model. 8 = Investment, depreciation, and output 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 05 0.0175 0.0 0 20 40 What is the steady-state level of capital? steady-state level of capital: 60 80 100 120 140 160 Capital (K) steady-state output: Depreciation Show Transcribed Text What is the steady-state output? vestment 160 160 200
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