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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Gettysburg

A historic town in Pennsylvania, known as the site of a pivotal Civil War battle in 1863 and Abraham Lincoln's Gettysburg Address.

Emancipation Proclamation

A presidential decree issued by Abraham Lincoln on January 1, 1863, declaring the freedom of all slaves in Confederate territory, marking a pivotal moment in the United States Civil War.

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The army that represented the Northern states of the United States during the American Civil War.

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