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2) Assume once again that production is given by- Y-K(21)L(21)- First-.pdf

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2) Assume once again that production is given by: Y = K ( 2 1 ) L ( 2 1 ) . First, write the production function in per person terms ( y = f ( k )) . Next, assume that the per person level of capital in the steady state is 4 , the depreciation rate is 5% per year, and population growth is 5% per year. Does this economy have "too much" or "too little" capital? How do you know? [Show your work]..

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2) Assume once again that production is given by: Y = K ( 2 1 ) L ( 2 1 ) . First, write the production function in per person terms ( y = f ( k )) . Next, assume that the per person level of capital in the steady state is 4 , the depreciation rate is 5% per year, and population growth is 5% per year. Does this economy have "too much" or "too little" capital? How do you know? [Show your work].

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2) Assume once again that production is given by- Y-K(21)L(21)- First-.pdf

  • 1. 2) Assume once again that production is given by: Y = K ( 2 1 ) L ( 2 1 ) . First, write the production function in per person terms ( y = f ( k )) . Next, assume that the per person level of capital in the steady state is 4 , the depreciation rate is 5% per year, and population growth is 5% per year. Does this economy have "too much" or "too little" capital? How do you know? [Show your work].