A Country in a Steady State Invests 50% of Its $\gamma$

question 237

Multiple Choice

A country in a steady state invests 50% of its output in new capital ( $\gamma$ = 0.5) and depreciates 5% of its capital stock ( $\delta$ = .05) . With a capital stock of 100 units, labor remains constant. Because of technological innovation, production improves from Y = $\sqrt { K }$ to Y = 2 $\sqrt { K }$
. What is the new steady-state level of output?

• A) 10
• B) 20
• C) 40
• D) 80

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Definitions:

Auscultation

The practice of using a stethoscope to hear the noises produced by the body's internal organs as part of diagnosing health issues.

Bowel Sounds

Noises made by the movement of the intestines, which can be heard during a physical examination and indicate the functioning of the gastrointestinal system.

Vascular Sounds

Sounds made by the blood circulating through the arteries and veins, often assessed using a stethoscope to detect abnormalities.

Pernicious Anemia

A type of anemia caused by the body’s inability to absorb vitamin B12, leading to a reduction in red blood cell production.