Re: 2011 Macro questions

Posted by yushi. on Jun 25, 2013; 7:07pm
URL: http://discussion-forum.276.s1.nabble.com/2011-Macro-questions-tp7582932p7582936.html

Y= A K^a L/L^a
Y= A (K/L)^a  L
Y/L= A (K/L)^a
y= Y/L , k= K/L
y= A k^a

at steady state, change in k is zero i.e, s.y= n.k
s A k^a= nk
1/4 20 k^1/2= 1/10 k
k= 50^2 at steady state.

similarly for golden rule, MPk=n...