Assume an endogenous growth model with labor augmenting technology.The production function is Y = F(K,AN), where A = a(K/N) such that y = ak.If the savings rate is s = 0.1, the rate of population growth is n = 0.04, and the depreciation rate is d = 0.02, how much would "a" have to be to achieve a 12% growth rate of output?
A)0)6
B)1)2
C)1)8
D)2)0
E)2)4

Question

Quizplus · Accepted Answer

The Answer is C

Assume an Endogenous Growth Model with Labor Augmenting Technology