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With a per-worker production function y = ¹/2, the steady-state capital stock per worker (k*) as a function of the saving rate (s) is given by: k* = s/8. K* = (s/8)². k* = (8 / s)². k* = 8/ s.

With a per-worker production function y = ¹/2, the steady-state capital stock per worker (k*) as a function of the saving rate (s) is given by: k* = s/8. K* = (s/8)². k* = (8 / s)². k* = 8/ s.

Microeconomics: Private and Public Choice (MindTap Course List)
Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter14: Investment, The Capital Market, And The Wealth Of Nations
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With a per-worker production function y = ¹/2, the steady-state capital stock per worker (k*) as a function of the saving rate (s) is given by: k* = s/ 6. k* = (s/8)². k* = (8 / s)². k* = 8/ s.
Transcribed Image Text:With a per-worker production function y = ¹/2, the steady-state capital stock per worker (k*) as a function of the saving rate (s) is given by: k* = s/ 6. k* = (s/8)². k* = (8 / s)². k* = 8/ s.
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