A hypothetical economy can be described by the solow growth


A hypothetical economy can be described by the Solow growth model. Answer the below questions for this economy by using the following information

y = k^0.5

saving rate (s) = 0.20

depreciation rate (?) = 0.12

initial capital per worker (k) = 4

population growth rate (n) = 0.02

a. What is the steady-state level of capital per worker?

b. What is the steady-state level of output per worker?

c. What is the level of steady-state consumption per worker?

d. What is the steady-state level of investment per worker?

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Microeconomics: A hypothetical economy can be described by the solow growth
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