In a closed economy with no government, use the following information to compute the long run level of total consumption, not per-worker consumption You are given: The production function F(K,Lt)=K%L-a The share of national income paid to owners of capital: a=.4 The rate of depreciation: 8=.3 The rate of savings s .5 The initial capital stock Ko=1 The labor supply L=5 for all t> Do not round any intermediate calculations. Please give an exact answer. This question will accept any answer within 0.1 of the exact answer.
In a closed economy with no government, use the following information to compute the long run level of total consumption, not per-worker consumption You are given: The production function F(K,Lt)=K%L-a The share of national income paid to owners of capital: a=.4 The rate of depreciation: 8=.3 The rate of savings s .5 The initial capital stock Ko=1 The labor supply L=5 for all t> Do not round any intermediate calculations. Please give an exact answer. This question will accept any answer within 0.1 of the exact answer.
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter17: Production And Growth
Section: Chapter Questions
Problem 5CQQ
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