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Assume that a country's per-worker production is given by y = k1/2, where y is output per-worker and k is capital per worker. Assume also that 10 percent of capital depreciates peryear (= 0.10).
a. If the saving rate (s) is 0.4, find capital per worker, production per worker, andconsumption per worker in the steady state.
b. Solve for steady-state capital per worker, production per worker, and consumption perworker with s = 0.6.
c. Solve for steady-state capital per worker, production per worker, and consumption perworker with s = 0.8.
d. Is it possible to save too much? Why?
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1. Explain whether each event changes the quantity of real GDP supplied, short-run aggregate supply, long-run aggregate supply, or a combination of these. 2.1. Car-makers in Australia switch to a new technology that raises productivity. 2.2. Toyota a..
Which of the following lists of exchange-rate systems is arranged in proper historical order, from earliest to most current?
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