In the Solow growth model, the output per worker is given by: y = 2k0.5 The rate at which the physical capital stock depreciates is 0.10. The growth rate of the population is 0.05. The savings rate is 0.30. Initial capital stock is 1. What is the steady-state level of consumption per worker?
In the Solow growth model, the output per worker is given by: y = 2k0.5 The rate at which the physical capital stock depreciates is 0.10. The growth rate of the population is 0.05. The savings rate is 0.30. Initial capital stock is 1. What is the steady-state level of consumption per worker?
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Transcribed Image Text:In the Solow growth model, the output per worker is given by: y = 2k0.5.
The rate at which the physical capital stock depreciates is 0.10.
The growth rate of the population is 0.05.
The savings rate is 0.30.
Initial capital stock is 1.
What is the steady-state level of consumption per worker?
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