Golden Rule Level of Capital Assume an economy has the following production function: Y = F(K, L) = 24K0.25L 0.75 2 Assume that the savings rate is 0.08, the depreciation rate is 0.06, and the population growth rate is 0.045. You may assume that the rate of technological progress is equal to 0. Round your answers to two decimal places. (a) Briefly define the Golden Rule level of capital. (b) Calculate the Golden Rule level of capital stock per worker. (c) What is the savings rate associated with the golden rule level of capital? (d) What is the consumption level at the golden rule steady state?
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Golden Rule Level of Capital Assume an economy has the following production function: Y = F(K, L) =...
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