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Making change in capital-labour ratio with respect to production function.

An economy has the for every employee production function

yt = 3Ki0.5

Here yt is out per worker and ktis the capital-labor ratio. The depreciation rate is 0.1.

Savings is given by

St = 0.3Yt

Where St is total national savings and Yt is total output.

Production yt = 4Ki5. Discuss the initiation for your results.

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M921337

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