Country A produces GDP according to the following equation: GDP = 5√K. The country has a savings rate of 17.3% and 9.5% of capital depreciates every year. What is this country's steady state amount of GDP? Round your final answer to two decimal places.

Country A produces GDP according to the following equation: GDP = 5√K. The country has a savings rate of 17.3% and 9.5% of capital depreciates every year. What is this country's steady state amount of GDP? Round your final answer to two decimal places.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter19: The Macroeconomic Perspective

Section: Chapter Questions

Problem 25CTQ: Cross country comparisons of GDP per capita typically use purchasing power parity equivalent...

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Question

5√K. The country has a
Country A produces GDP according to the following equation: GDP
savings rate of 17.3% and 9.5% of capital depreciates every year. What is this country's steady
state amount of GDP?
Round your final answer to two decimal places.
P

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