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Suppose Y = K¹/²,total Factor Productivity Is Constant and Equal

Question 8

Multiple Choice

Suppose y = k¹/²,total factor productivity is constant and equal to 1,s = 0.40,and d = 0.10.When the economy reaches the steady state,the capital-labour ratio is ________ of capital per worker.


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

Correct Answer:

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