The economy of Alpha can be described by the Solow growth model. The following are some characteristics of the Alpha economy: $\begin{array}{lr}
\text { saving rate (s) } & 0.20 \
\text { depreciati on rate $ ( \delta $}) & 0.12 \
\text { steady-state capital per worker ( } k) & 4 \
\text { populati on growth rate (n) } & 0.02 \
\text { steady-state output per worker } & 20,000
\end{array}$

a. What is the steady-state growth rate of output per worker in Alpha?
b. What is the steadv-state growth rate of total output in } Alpha ?
c.What is the level of steady-state consumption per worker in Alpha?
d. What is the steady-state level of investment per worker in Alpha?

Question

The economy of Alpha can be described by the Solow growth model. The following are some characteristics of the Alpha economy: $\begin{array}{lr}
\text { saving rate (s) } & 0.20 \
\text { depreciati on rate  $ (  \delta   $}) & 0.12 \
\text { steady-state capital per worker ( } k) & 4 \
\text { populati on growth rate (n) } & 0.02 \
\text { steady-state output per worker } & 20,000
\end{array}$

a. What is the steady-state growth rate of output per worker in Alpha?
b. What is the steadv-state growth rate of total output in } Alpha ?
c.What is the level of steady-state consumption per worker in Alpha? 
 d. What is the steady-state level of investment per worker in Alpha?

Quizplus · Accepted Answer

The Answer of The economy of Alpha can be described by the Solow growth model. The following are some characteristics of the Alpha economy: $\begin{array}{lr}
\text { saving rate (s) } & 0.20 \
\text { depreciati on rate  $ (  \delta   $}) & 0.12 \
\text { steady-state capital per worker ( } k) & 4 \
\text { populati on growth rate (n) } & 0.02 \
\text { steady-state output per worker } & 20,000
\end{array}$

a. What is the steady-state growth rate of output per worker in Alpha?
b. What is the steadv-state growth rate of total output in } Alpha ?
c.What is the level of steady-state consumption per worker in Alpha? 
 d. What is the steady-state level of investment per worker in Alpha?

The Economy of Alpha Can Be Described by the Solow