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Business, 18.11.2019 19:31 Rainbowface33
Suppose an economy described by the solow model has the following production function: y = k1/2(le)1/2.a. for this economy, what is f(k)? b. use your answer to part (a) to solve for the steady-state value of y as a function of s, n, g, and δ.c. two neighboring economies have the above production function, but they have different parameter values. atlantis has a saving rate of 28 percent and a population growth rate of 1 percent per year. xanadu has a saving rate of 10 percent and a population growth rate of 4 percent per year. in both countries, g = 0.02 and δ = 0.04. find the steady-state value of y for each country.
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