THE NEOCLASSICAL GROWTH MODEL / TUTORIALOUTLET DOT COM

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THE NEOCLASSICAL GROWTH MODEL / TUTORIALOUTLET
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THE NEOCLASSICAL GROWTH MODEL / TUTORIALOUTLET
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• The neoclassical growth model
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• Question 4 (2 2 2 6 marks)
• In the following questions we are considering the
  neoclassical growth model.
• In a diagram illustrate an economy in a steady
  state. Identify the steady state level of output
• per capita ( y ) and capital per capita ( k ).
  Also determine the growth rate in y
• k , output ( Y ) and capital ( K ) at the steady
  state as a function of the model
• parameters the savings rate ( s ), the
  population growth rate ( n ) and the
  depreciationrate ( d ). Instructions Maximum
  100 words. You must enter the word count of your
  answer. (word count ?)
• (b) Suppose there is an increase in the
  population rate to n' gtn . Illustrate the new
  steady
• state equilibrium for output per capita ( y ),
  capital per capita ( k ) relative to that in(a).

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THE NEOCLASSICAL GROWTH MODEL / TUTORIALOUTLET
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