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Considering Solow Model with technological change. The initial aggregate production Y(0)= 160 and the initial

capital K(0)=64. Also we know the initial state of technology T(0)= 1.6 and the number of workers L(0)=100. Given the exogenous parameters s =0.1, n=0.01, theta=0.05, d =0. What is delta k^e(0) the change of capital per effective worker?

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Answer: 4 y per effective worker(y(k)=160/100=1.6 K per effective... View the full answer

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