In a small country each labor hour has capital stock equal to 900 units. This year it produced 20 units of new capital goods, with a depreciation rate of 10 percent, and a production function of . If there is no technological advancement, what will the growth rate in this country be over the next year?
A) -3.96 percent
B) 10 percent
C) 2.4 percent
D) -4.13 percent

Question

In a small country each labor hour has capital stock equal to 900 units. This year it produced 20 units of new capital goods, with a depreciation rate of 10 percent, and a production function of . If there is no technological advancement,  what will the growth rate in this country be over the next year?
A) -3.96 percent 
B) 10 percent 
C) 2.4 percent 
D) -4.13 percent

Quizplus · Accepted Answer

The Answer of In a small country each labor hour has capital stock equal to 900 units. This year it produced 20 units of new capital goods, with a depreciation rate of 10 percent, and a production function of . If there is no technological advancement,  what will the growth rate in this country be over the next year?
A) -3.96 percent 
B) 10 percent 
C) 2.4 percent 
D) -4.13 percent

In a Small Country Each Labor Hour Has Capital Stock