Business, 03.07.2020 17:01 meramera50
Use the following information to answer the question(s) below:
i. the rate of depreciation is 10% per year.
ii. the population growth rate is 2% per year.
iii. the growth rate of technology is 3% per year.
1. Refer to the information above. Which of the following represents the level of investment needed to maintain constant capital per effective worker (K/NA) in this economy?
a. 2%
b. 3%
c. 5%
d. 10%
e. 15%
2. Refer to the information above. Which of the following represents the steady-state growth rate of output in this economy?
a. 2%
b. 3%
c. 5%
d. 10%
e. 15%
3. Refer to the information above. Which of the following represents the steady-state growth rate of output per worker in this economy?
a. 2%
b. 3%
c. 5%
d. 10%
e. 15%
Answers: 2
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Use the following information to answer the question(s) below:
i. the rate of depreciation is 10% p...
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