What is ruritania steady state level of capital

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Question: Ruritania's labor, technology, and education levels are constant, and its economy has a production func"on that can be described by Y = 2K" (note: this can also be written Y-2k) The depreciation rate can be described by the linear function d 0.03K. In year 1, the investment rate in Ruritania is-0.25% in year 2, some foreign savings start flowing into the economy and the investment function changes to I = 0.3Y.

What is Ruritania's steady state level of capital and output at the end of year 2?

What is Ruritania's GDP growth rate from the end of year 1 to the end of year 2?

Reference no: EM132198976

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