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Cobb-Douglas Assignment | Homework For You

Author:
December 9th, 2019
  • If the U.S. production function is Cobb-Douglas with capital share 0.3, output growth is 3 percent per year, depreciation is 4 percent per year, and the Golden  Rule steady-state capital output ratio is 4.29, to reach the Golden Rule steady state, the saving rate must be?Homework For You
  • a) 17.5 percent
  • b) 25 percent
  • c) 30 percent
  • d) 42.9 percent

How do you work this problem?  Where is the output growth of 3 percent used?  Is the production function y=k ^0.3? Get Economics homework help today

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