Assume an Endogenous Growth Model with Labor Augmenting Technology

question 44

Multiple Choice

Assume an endogenous growth model with labor augmenting technology.The production function is Y = F(K,AN) , with A = 2(K/N) such that y = 2k.If the savings rate is s = 0.08, the rate of population growth is n = 0.03, and the rate of depreciation is d = 0.04, what is the growth rate of output per capita?

• A)1%
• B)3%
• C)4%
• D)7%
• E)9%

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Definitions:

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A structure in the brain involved in processing emotions, particularly those related to survival, such as fear and aggression.

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