Country A produces GDP according to the following equation: GDP = 5√K. The country has a savings rate of 17.3% and 9.5% of capital depreciates every year. What is this country's steady state amount of GDP? Round your final answer to two decimal places.
Country A produces GDP according to the following equation: GDP = 5√K. The country has a savings rate of 17.3% and 9.5% of capital depreciates every year. What is this country's steady state amount of GDP? Round your final answer to two decimal places.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter19: The Macroeconomic Perspective
Section: Chapter Questions
Problem 25CTQ: Cross country comparisons of GDP per capita typically use purchasing power parity equivalent...
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![5√K. The country has a
Country A produces GDP according to the following equation: GDP
savings rate of 17.3% and 9.5% of capital depreciates every year. What is this country's steady
state amount of GDP?
Round your final answer to two decimal places.
P](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbb5aba3c-4931-42d1-80b4-3d9f41ab8cf8%2F18370a98-e428-40c2-8845-6f68b5597034%2Fs1mgep_processed.jpeg&w=3840&q=75)
Transcribed Image Text:5√K. The country has a
Country A produces GDP according to the following equation: GDP
savings rate of 17.3% and 9.5% of capital depreciates every year. What is this country's steady
state amount of GDP?
Round your final answer to two decimal places.
P
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