What distinguishes the golden rule rate of capital

Reference no: EM13238413

Suppose that the economy under study has the following characteristics:
s = 0.30 n = 0.02 g = 0.10 d = 0.03
K = 1600 Y = 800 N = 100 A = 2
Y = F(K, N, A) = AF(K, N) = A(K^(1/2))(N^(1/2))

What distinguishes the golden rule rate of capital accumulation from other steady-state rates of capital accumulation? Is the rate at which capital is being accumulated in this economy consistent with the golden rule?

Reference no: EM13238413

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