Population Growth and Technological Progress – Work It Out An economy has a Cobb–Douglas production function: Y = K"(LE)!-« The economy has a capital share of 0.20, a saving rate of 49 percent, a depreciation rate of 4.00 percent, a rate of population growth of 1.50 percent, and a rate of labor-augmenting technological change of 4.0 percent. It is in steady state. . At what rates do total output and output per worker grow?
Population Growth and Technological Progress – Work It Out An economy has a Cobb–Douglas production function: Y = K"(LE)!-« The economy has a capital share of 0.20, a saving rate of 49 percent, a depreciation rate of 4.00 percent, a rate of population growth of 1.50 percent, and a rate of labor-augmenting technological change of 4.0 percent. It is in steady state. . At what rates do total output and output per worker grow?
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![Population Growth and Technological Progress – Work It Out
An economy has a Cobb-Douglas production function:
Y = K“(LE)!-«
The economy has a capital share of 0.20, a saving rate of 49 percent, a depreciation rate of 4.00 percent, a rate of population
growth of 1.50 percent, and a rate of labor-augmenting technological change of 4.0 percent. It is in steady state.
a. At what rates do total output and output per worker grow?
Total output growth rate:
%
Output per worker growth rate:
%
Output per effective worker
is constant in the steady state and does not change.
) increases in the steady state.
declines in the steady state.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Feab36a27-3cab-4657-b5b1-1d4e9fa1d21a%2F98b70d4f-13e7-40ca-af98-30b0e3b3811c%2Fap52zkk_processed.png&w=3840&q=75)
Transcribed Image Text:Population Growth and Technological Progress – Work It Out
An economy has a Cobb-Douglas production function:
Y = K“(LE)!-«
The economy has a capital share of 0.20, a saving rate of 49 percent, a depreciation rate of 4.00 percent, a rate of population
growth of 1.50 percent, and a rate of labor-augmenting technological change of 4.0 percent. It is in steady state.
a. At what rates do total output and output per worker grow?
Total output growth rate:
%
Output per worker growth rate:
%
Output per effective worker
is constant in the steady state and does not change.
) increases in the steady state.
declines in the steady state.
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