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Cobb-douglas production function

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Reference no: EM132279293

Use the Cobb-Douglas production function where a= 0.3 and a depreciation rate of 0.1. Examine the steady state outcomes of an economy that invest 20% and 30% of GDP. How many periods would it take for an economy with a 20% investment rate to reach its new steady state if it increases its investment rate to 30%.

Reference no: EM132279293

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