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If Y = K1/2, There Is No Population Growth or Technological

Question 67

Multiple Choice

If y = k1/2, there is no population growth or technological progress, 5 percent of capital depreciates each year, and a country saves 20 percent of output each year, then the steady-state level of capital per worker is:


A) 2.
B) 4.
C) 8.
D) 16.

Correct Answer:

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