Y=√KVAN, where K is capital, N is labor, A is the state of technology, and AN denotes the amount of effective labor in the econom Suppose that the saving rate, s, is equal to 18%, and that the rate of depreciation, 8, is equal to 12%. Suppose further that the number of workers, gn, grows at 6% per year and that the rate of technological progress, 9A- 4% per year. Given the values of the economy, compute the following: The steady-state value of the capital stock per effective worker is. (Round your response to two decimal places.) The steady-state value of output per effective worker is. (Round your response to two decimal places.) The steady-state value of the growth rate of output per effective worker is%. (Enter your response as an integer.) The steady-state value of the growth rate of output per worker is%. (Enter your response as an integer.) The steady-state value of the growth rate of output is%. (Enter your response as an integer.) Suppose that the rate of technological progress doubles to 8% per year. Recompute the steady-state values. The steady-state value of the capital stock per effective worker is (Round your response to two decimal places.) The steady-state value of output per effective worker is. (Round your response to two decimal places.) EUQUE as an integer)
Y=√KVAN, where K is capital, N is labor, A is the state of technology, and AN denotes the amount of effective labor in the econom Suppose that the saving rate, s, is equal to 18%, and that the rate of depreciation, 8, is equal to 12%. Suppose further that the number of workers, gn, grows at 6% per year and that the rate of technological progress, 9A- 4% per year. Given the values of the economy, compute the following: The steady-state value of the capital stock per effective worker is. (Round your response to two decimal places.) The steady-state value of output per effective worker is. (Round your response to two decimal places.) The steady-state value of the growth rate of output per effective worker is%. (Enter your response as an integer.) The steady-state value of the growth rate of output per worker is%. (Enter your response as an integer.) The steady-state value of the growth rate of output is%. (Enter your response as an integer.) Suppose that the rate of technological progress doubles to 8% per year. Recompute the steady-state values. The steady-state value of the capital stock per effective worker is (Round your response to two decimal places.) The steady-state value of output per effective worker is. (Round your response to two decimal places.) EUQUE as an integer)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Y=√KVAN,
where K is capital, N is labor, A is the state of technology, and AN denotes the amount of effective labor in the economy.
Suppose that the saving rate, s, is equal to 18%, and that the rate of depreciation, 8, is equal to 12%.
Suppose further that the number of workers, gn, grows at 6% per year and that the rate of technological progress, 9A, is
4% per year.
Given the values of the economy, compute the following:
The steady-state value of the capital stock per effective worker is. (Round your response to two decimal places.)
The steady-state value of output per effective worker is. (Round your response to two decimal places.)
The steady-state value of the growth rate of output per effective worker is%. (Enter your response as an integer.)
The steady-state value of the growth rate of output per worker is%. (Enter your response as an integer.)
The steady-state value of the growth rate of output is%. (Enter your response as an integer.)
Suppose that the rate of technological progress doubles to 8% per year. Recompute the steady-state values.
The steady-state value of the capital stock per effective worker is. (Round your response to two decimal places.)
The steady-state value of output per effective worker is. (Round your response to two decimal places.)
The steady-state value of the growth rate of output per effective worker is. (Enter your response as an integer.)
1%. (Enter your response as an integer.)
The steady-state value of the growth rate of output per worker is
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