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.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Question
![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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1796265f-7b92-434a-9043-1d765b542ded%2Ffd43477b-6416-4dc9-a9aa-d3d1d5cc8f73%2Fwnjea1s_processed.jpeg&w=3840&q=75)
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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