An Economy Has 20 Million Workers in Research and Development

question 61

Essay

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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Definitions:

Sophisticated

Reflecting a high degree of complexity, refinement, or development, often in technology, art, tastes, or mannerisms.

Combine Sentences

The process of joining two or more sentences into one, often to improve clarity and flow.

Stand Alone

Refers to something that is complete in itself and does not require support or association with other things to function or be understood.

Clustering

A process or method of grouping a set of objects or points in such a way that objects in the same group are more similar to each other than to those in other groups.