Suppose the production function isY=AKαL1-α where A = 4 and α=0.4 (note: there is no change in technology since A is constant)

Suppose the production function isY=AKαL1-α where A = 4 and α=0.4 (note: there is no change in technology since A is constant). Assume the economy is in a steady state. The labor force growth rate n = 0.02, capital depreciation rate δ = 0.1, and savings rate s = 0.06. What is the capital per worker in the steady state according to the Solow model?

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Rahul Sunny answered 1 year ago

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