Consider the Human Capital Accumulation model with a production function given by Y = AK0S H0.5, saving rates sx = 0.16 and sH = 0.09, a common depreciation rate is 8 = 0.05 and A = 1. Which of the following is false? the long-run intensity of human capital relative to physical capital will fall when s# flls O the long run growth rate of physical capital will fall when s falls the long-run intensity of human capital relative to physical capital is 9/16 O the long-run growth rate of physical capital is 0.12

Consider the Human Capital Accumulation model with a production function given by Y = AK0S H0.5, saving rates sx = 0.16 and sH = 0.09, a common depreciation rate is 8 = 0.05 and A = 1. Which of the following is false? the long-run intensity of human capital relative to physical capital will fall when s# flls O the long run growth rate of physical capital will fall when s falls the long-run intensity of human capital relative to physical capital is 9/16 O the long-run growth rate of physical capital is 0.12

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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