An economy has a steady-state output level of 9. The economy's labor, technology, and education levels are constant and the economy is described by the production function $Y = \sqrt { K }$
. If the depreciation rate is 6%, what is the steady-state capital stock and what is the investment rate needed to maintain it?

Question

An economy has a steady-state output level of 9. The economy's labor, technology, and education levels are constant and the economy is described by the production function $Y = \sqrt { K }$ 
. If the depreciation rate is 6%, what is the steady-state capital stock and what is the investment rate needed to maintain it?

Quizplus · Accepted Answer

The Answer of An economy has a steady-state output level of 9. The economy's labor, technology, and education levels are constant and the economy is described by the production function $Y = \sqrt { K }$ 
. If the depreciation rate is 6%, what is the steady-state capital stock and what is the investment rate needed to maintain it?

An Economy Has a Steady-State Output Level of 9 Y=KY = \sqrt { K }Y=K​

An Economy Has a Steady-State Output Level of 9 $Y = \sqrt { K }$