In Solow's model of economic growth, suppose that s represents the savings rate, z represents total factor productivity, k represents the level of capital per worker, and f(k) represents the per worker production function. Also suppose that n represents the population growth rate and d represents the depreciation rate of capital. The equilibrium level of capital per worker, k*, will satisfy the equation
A) szf(k*) = (n + d) k*.
B) szk* = (n + d) f(k*) .
C) nf(k*) =
D) f(k*) = k*
E) f(k*) = (n + d) k*.
Correct Answer:
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