Imagine an economy with production function Y = F(K) = and 400 units of capital. If the fraction of output invested in new capital is γ = 0.2, the depreciation rate is δ = 0.05, and the economy starts with output of 20, what does the Solow model predict will happen to output in the long run?

Ahypothesis is: a the average squared deviations about the mean of a distribution of values b) an empirically testable statement that is an unproven supposition developed in order to explain phenomena a statement that asserts the status quo; that is, any change from what has been c) thought to be true is due to random sampling order da statement that is the opposite of the null hypothesis e) the error made by rejecting the null hypothesis when it is true