Y₁ = A[K² + N²]¹/² Production function: K₁₁ = (18)K + 1₂ Capital evolution: t+1 I = SY₂ t Investment: t Assume that the growth of the number of workers N and technology A is always constant and equal to 9N=9A = 0. The savings rate is between zero and one 0 < s < 1, and there is full capital depreciation across periods (i.e. 8 = 1)
Y₁ = A[K² + N²]¹/² Production function: K₁₁ = (18)K + 1₂ Capital evolution: t+1 I = SY₂ t Investment: t Assume that the growth of the number of workers N and technology A is always constant and equal to 9N=9A = 0. The savings rate is between zero and one 0 < s < 1, and there is full capital depreciation across periods (i.e. 8 = 1)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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please type the answer by computer if you can, so i can see it clearly, thank you!!!
Consider the following version of the Solow model:
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