What is the growth rate of per capita income in long term

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Reference no: EM133276702

Question - Consider an economy where the depreciation rate is 7%, the population growth rate is 1%, and the productivity growth rate is 2.4%. The savings rate is 24% and the capital coefficient a= 1/3.

What is the growth rate of per capita income in the long term (= on the balanced growth path)?

Reference no: EM133276702

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