Two countries, X & Y both have the production function f(k) = k0.5 but X starts with an initial k of 4 while Y starts with initial k of 16. Both of the countries have the same values for these exogeneous variables: s = 0.2, A = 1, depreciation rate = 0.05, n = 0, L0 = 10.As you can see, X starts out with just 25% as much capital as Y. How many periods does it take before X has at least 50% as much capital as Y? (A spreadsheet will help a lot with this) Two countries, X & Y both have the productionfunction f(k) = k0.5 but X starts with an initial k of4 while Y starts with initial k of 16. Both of thecountries have the same values for theseexogeneous variables: s = 0.2, A = 1, depreciationrate = 0.05, n = 0, Lo = 10.As you can see, X starts out with just 25% as muchcapital as Y. How many periods does it take beforeX has at least 50% as much capital as Y? (Aspreadsheet will help a lot with this)%3D

Production function describes the relationship between the inputs used in production and the output…

Answered: Two countries, X & Y both have the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Two countries, X & Y both have the production function f(k) = k0.5 but X starts with an initial k of 4 while Y starts with initial k of 16. Both of the countries have the same values for these exogeneous variables: s = 0.2, A = 1, depreciation rate = 0.05, n = 0, L0 = 10.

As you can see, X starts out with just 25% as much capital as Y. How many periods does it take before X has at least 50% as much capital as Y? (A spreadsheet will help a lot with this)

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