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In this same country, 8%of the capital stock depreciates each year. Additionally, the ecnonmy consumes 60% of output.

A)When K=500 is the captial stock growing or shrinking?
B)When K=400 is the captial stock growing or shrinking?
C)Solve for steady-state level of captial and output
D)What savings rate would be necessary to achieve a steady-state output of 150?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M940701

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