In a steady-state economy with no population growth,output per worker is 35,the saving rate is 20 percent,and the depreciation rate is 11 percent.The level of capital per worker is ________.
A)64
B)19
C)39
D)28

Question

Quizplus · Accepted Answer

In a steady-state economy, the level of capital per worker (k) is determined by the equation s*y = δ*k, where s is the saving rate, y is the output per worker, and δ is the depreciation rate. Substituting the given values: 0.20 * 35 = 0.11 * k, solving for k gives k = 64.

In a Steady-State Economy with No Population Growth,output Per Worker