Assume an Endogenous Growth Model with Labor Augmenting Technology

Multiple Choice

Assume an endogenous growth model with labor augmenting technology.The production function is Y = F(K,AN) , with A = 2(K/N) such that y = 2k.If the savings rate is s = 0.08, the rate of population growth is n = 0.03, and the rate of depreciation is d = 0.04, what is the growth rate of output per capita?

A) 1%
B) 3%
C) 4%
D) 7%
E) 9%