Solved

If the Production Function in a Country Is Y =

Question 165

Multiple Choice

If the production function in a country is Y = K1/2, the investment rate equals 0.25, and the depreciation rate is 0.05, then the steady-state level of the capital stock is equal to:


A) 5 units.
B) 10 units.
C) 15 units.
D) 25 units.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q26: The social benefits of research and development

Q61: Which of the following can drive long-run

Q97: Explain what the production function represents in

Q130: Good institutions tend to:<br>A) decrease the rate

Q147: A production function can be used to

Q160: As a city rebuilds after a hurricane

Q162: The marginal product of capital is the

Q163: In a steady state, output is:<br>A) growing.<br>B)

Q164: Economists speculate that China's rapid growth will

Q168: Diminishing returns to capital implies that _