document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1119608>Question 1119608</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Consider the Solow growth model, with production function given by Y = K ^ 0.5L ^ 0.5, where Y = product, K = capital stock, L = number of workers. In this economy there is neither population growth nor technological progress. The savings rate is 40% and the capital stock depreciation rate is 10%.\r<BR>\n" );
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document.write( "1. Calculate the capital stock per stationary worker.\r<BR>\n" );
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document.write( "2. Calculate the level of the product per worker in steady state.\r<BR>\n" );
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document.write( "3. Use the Solow diagram to explain what happens to the level of output per worker if the savings rate rises to 20%. Remember to compare the two stationary states by analyzing the transition trajectory.\r<BR>\n" );
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document.write( "4. Is it correct to say that the change in the saving rate has permanently reduced the growth rate of output per worker? Justify. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #735188 by </B><A HREF=/tutors/aboutme.mpl?userid=solver91311><B>solver91311(24713)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=solver91311><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=solver91311><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=735188\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> <font face=\"Times New Roman\" size=\"+2\">\r<BR>\n" );
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document.write( "This is a mathematics homework help website.  You are asking an Economics question.  That's like going to the hardware store to buy fresh fruit.  You chose poorly.<BR>\n" );
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document.write( "John<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=\"/cgi-bin/rendertex.cgi?\LARGE e^{i\pi}\ +\ 1\ =\ 0\"><BR>\n" );
document.write( "My calculator said it, I believe it, that settles it<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" SRC=\"/cgi-bin/rendertex.cgi?\Large \ \\r\"> </SPAN>\n" );
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