If the production function is y = k^1/2, the steady-state value of y is: A) y = ((s + g)/($\delta$ + n))^1/2. B) y = (s + g)/($\delta$+ n). C) y = (2/($\delta$+ n + g))^1/2. D) y = s/($\delta$ + n + g).

Question

Quizplus · Accepted Answer

In the steady state, output per worker (y) is determined by the savings rate (s), depreciation rate (δ), population growth rate (n), and technological growth rate (g). The correct formula for the steady-state output per worker is y = s/(δ + n + g).

If the Production Function Is Y = K1/2, the Steady-State δ\deltaδ

If the Production Function Is Y = K^1/2, the Steady-State $\delta$