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Unformatted text preview: and that 5% of capital depreciates each year. Assume further that country A saves 10% of output each year and country B saves 20% of output each year. Using your answer from part B) and the steadystate condition that investment equals depreciation, find the steadystate condition that investment equals depreciation; find the steadystate level of capital per worker for each country. Then find the steadystate levels of income per worker and consumption per worker.(3 pts) D) What is the golden rule of capital accumulation? Show how it is calculated and explain what it is. What is the saving rate at the golden rate of capital accumulation? (3pts, 1 points each) 4 Scratch paper...
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This note was uploaded on 03/22/2012 for the course ECONOMICS 202 taught by Professor Pinarderingure during the Spring '12 term at Middle East Technical University.
 Spring '12
 PINARDERINGURE
 Macroeconomics

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