3- Growth Model
Suppose that the output (Y) in the economy is given by the following aggregate production function.
Yt = Kt +Nt
where the Kt is capital and Nt is population. Furthermore assume that the capital depreciate at the rate of ẟ and That saving constant and proportion s of income you may assume that ẟ>s
1-suppose that the population remains constant . solve for the steady state level of capital per worker
2- now suppose that the population growth at rate n . solve for the steady state level of capital per worker
3-Based on your answer to the part 2) above. solve for the steady state growth rate (in the term of n) of following
Capital per worker
Output per worker
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