Assume the economy is in a steadystate for all of the follo.pdf

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Assume the economy is in a steady-state for all of the following questions. a. In a steady-state, we know that ()=(++) . By rearranging this equation, we can prove that =++ ; so saving is a function of depreciation and the growth rates of population and technological progress. =++ ; so the production function is constant and does not exhibit diminishing returns. =++ ; meaning the capital- output ratio is constant. b..

Assume the economy is in a steady-state for all of the following questions. a. In a steady-state, we
know that ()=(++) . By rearranging this equation, we can prove that =++ ; so saving is a function of
depreciation and the growth rates of population and technological progress. =++ ; so the
production function is constant and does not exhibit diminishing returns. =++ ; meaning the capital-
output ratio is constant. b.

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