Question

Consider the following production function Y = F(K,A

  • L = K1/3(A
  • L 2/3 Calculate the steady state level of output per effective unit of labor, when saving rate is 25%, depreciation is 6%, technological growth is 2% and population growth is 2%
A 1.40%
B 1.58%
C 1.65%
D 1.78%
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