Suppose that the population growth (gN) is 3% p.a., technological progress is 0,001% p.a. (gA) and the production function is given by Y = 0,75K(AN)i a. Derive the steady state levels of output per effective worker and capital per effective worker in terms of the saving rate, s; depreciation rate, 8; the population growth (gN); and technological progress (gA). b. Derive the equation for steady state consumption per effective worker in the saving rate, s; depreciation rate, 8; the population growth (gN); and technological progress (aA).
Suppose that the population growth (gN) is 3% p.a., technological progress is 0,001% p.a. (gA) and the production function is given by Y = 0,75K(AN)i a. Derive the steady state levels of output per effective worker and capital per effective worker in terms of the saving rate, s; depreciation rate, 8; the population growth (gN); and technological progress (gA). b. Derive the equation for steady state consumption per effective worker in the saving rate, s; depreciation rate, 8; the population growth (gN); and technological progress (aA).
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Suppose that the population growth (gN) is 3% p.a., technological progress is 0,001% p.a. (gA)
and the production function is given by Y = 0,75K (AN)i
a. Derive the steady state levels of output per effective worker and capital per effective
worker in terms of the saving rate, s; depreciation rate, 8; the population growth (gN);
and technological progress (gA).
b. Derive the equation for steady state consumption per effective worker in the saving
rate, s; depreciation rate, 8; the population growth (gN); and technological progress
(gA).
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