In the Solow model,if f(k)= 8k0.5,s = 0.2,n = 0.3,and d = 0.1,what is the value of k at equilibrium?

Name: In the Solow model,if f(k)= 8k0.5,s = 0.2,n = 0.3,and d = 0.1,what is the value of k at equilibrium?
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Quizplus · Accepted Answer

In the Solow model, the steady-state level of capital per worker (k*) is found where investment equals depreciation plus dilution. The equation is s*f(k) = (n+d)*k. Substituting the given values, 0.2*8k^0.5 = 0.4k. Solving this equation gives k = 4.

In the Solow Model,if F(k)= 8k0