Published on 20 Apr 2016
In last week’s Principles of Macroeconomics video, you learned about the steady state level of capital and the Solow model of economic growth. Here are two of the practice questions from that video:
Country A has K=10,000 and produces GDP according to the following equation: GDP=5√K.
1) If the country devotes 25% of its GDP to making investment goods, how much is the country investing?
2) If 1% of all machines become worthless every year (they depreciate, in other words) in Country A, GDP is…?
June 19, 2017
Office Hours: The Solow Model
Comments Off on Office Hours: The Solow Model
No Comments
No comments yet.
RSS feed for comments on this post.
Sorry, the comment form is closed at this time.
