The production function of a country is Y=K^(1/2)L^(1/2). If economy starts with 10 units of capital per worker, 25 percent of output is saved and 10 capital stock depriciates every year, find the first year's change in the capital stock for this country, O a. 0.47 O b. 0.84 O c. 0.36 O d. 0.11 O e. 0.22

The production function of a country is Y=K^(1/2)L^(1/2). If economy starts with 10 units of capital per worker, 25 percent of output is saved and 10 capital stock depriciates every year, find the first year's change in the capital stock for this country, O a. 0.47 O b. 0.84 O c. 0.36 O d. 0.11 O e. 0.22

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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