Consider Solow growth model provided with an aggregate production given as Y = K1/3L2/3, with population growth rate of 2% , technological advancemen 1% and depreciation rate given as 2%. Also it is provided that marginal propensity to consume in the economy is 0.8. ? What is the long run equilibrium output/labor ? 1.99 4 8.

Essentials of Economics (MindTap Course List)
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Author:N. Gregory Mankiw
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Chapter17: Production And Growth
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Consider Solow growth model provided with an aggregate production given as Y = K1/3L2/3, with population growth rate of 2% , technological advancement rate of
1% and depreciation rate given as 2%. Also it is provided that marginal propensity to consume in the economy is 0.8. ? What is the long run equilibrium level of
output/labor ?
1.99
4
1
8.
Transcribed Image Text:Consider Solow growth model provided with an aggregate production given as Y = K1/3L2/3, with population growth rate of 2% , technological advancement rate of 1% and depreciation rate given as 2%. Also it is provided that marginal propensity to consume in the economy is 0.8. ? What is the long run equilibrium level of output/labor ? 1.99 4 1 8.
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