Solve for steady-state level of captial and output

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Reference no: EM13184204

Suppose a country has the following production function: Y=K^(3/4)

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?

Reference no: EM13184204

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