(Answered) In an economy without depreciation of capital stock output

Economics

In an economy without depreciation of capital stock, output is $1,000, government spending is $200, capital stock is $2,000 and consumption is $700. (a) If net exports are zero, what is the growth rate of the capital stock? (b) If there is a deficit in the foreign trade balance equal to $100, what would be the rate of growth of the capital stock?

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Macroeconomics, Economics

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