Home / Questions / Edit question Suppose that the economy is summarized by the following Production Yt=10Kt^0...

Edit question Suppose that the economy is summarized by the following Production Yt=10Kt^0.3Lt^0.7 Consumption

Edit question Suppose that the economy is summarized by the following: Production- Yt=10Kt^0.3Lt^0.7 Consumption- Ct= 0.8Yt Depreciation rate 10% MPK= 3Kt^-0.7Lt ^0.7 or in capita terms MPK= 3kt ^-.7 Find the golden rule level of capital stock and consumption for the economy. (Hint: In order for the economy to reach the golden rule, the savings rate had to change so that the new per capita consumption function is different than ct = 0.8yt. )

Jun 01 2020 Read more Less More

Answer (Solved)

question Subscribe To Get Solution

Recent Questions

Chat Now

Welcome to Live Chat

Welcome to MyCourseHelp Services, World's leading Academic solutions provider with Millions of Happy Students.

Please fill in the form