Consider the Solow model with population growth and no technological progress with production function Y=K1/2 1/2. If the total capital per worker in year 1 is 9 units, the population growth rate is 1 percent, depreciation rate is 9 percent, and saving rate is 40 percent, then the capital per worker at the beginning of year 2 will be units.
Consider the Solow model with population growth and no technological progress with production function Y=K1/2 1/2. If the total capital per worker in year 1 is 9 units, the population growth rate is 1 percent, depreciation rate is 9 percent, and saving rate is 40 percent, then the capital per worker at the beginning of year 2 will be units.
Chapter20: Economic Growth In The Global Economy
Section: Chapter Questions
Problem 3P
Question
Transcribed Image Text:Consider the Solow model with population growth and no technological progress with production
function Y=K1/2 1/2. If the total capital per worker in year 1 is 9 units, the population growth rate is
1 percent, depreciation rate is 9 percent, and saving rate is 40 percent, then the capital per worker at
the beginning of year 2 will be
units.
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