An economy has 20 million workers in research and development, where their productivity is 0.004, and the level of technology is 6.75. The depreciation rate is 0.15, and the saving rate is 0.2. The per worker production function is y = Ak1/3 (1-α), and there are 180 million production workers. Show that, in equilibrium, the ratio of capital to output is constant.

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The Answer of An economy has 20 million workers in research and development, where their productivity is 0.004, and the level of technology is 6.75. The depreciation rate is 0.15, and the saving rate is 0.2. The per worker production function is y = Ak1/3 (1-α), and there are 180 million production workers. Show that, in equilibrium, the ratio of capital to output is constant.

An Economy Has 20 Million Workers in Research and Development