suppose that the production function is cobb douglas a. find the expression for k*, y* and c* as functions of the parameters of the model, s, n, 8 Show Transcribed Text b. what is the golden-rule value of k c. what saving rate is needed to yield the golden - rule capital stock?

suppose that the production function is cobb douglas a. find the expression for k, y and c* as functions of the parameters of the model, s, n, 8 Show Transcribed Text b. what is the golden-rule value of k c. what saving rate is needed to yield the golden - rule capital stock?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter20: Economic Growth

Section: Chapter Questions

Problem 11SCQ: Would you expect capital deepening to result in diminished1etmns? Why or why not? Would you expect...

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Question

suppose that the production function is cobb
douglas
a. find the expression for k*, y* and c* as
functions of the parameters of the model, s, n,
8
Show Transcribed Text
b. what is the golden-rule value of k
c. what saving rate is needed to yield the golden
- rule capital stock?

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Step 2: Find the expression for k*, y* and c* as functions of the parameters of the model, s, n,

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Step 3: Explain the golden-rule value of k

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Step 4: Explain the golden-rule value of s required to sustain the kGR

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