SP26 ECON 302 002 Midterm Exam #2 (Chapters 5 6): Sample Questions

Consider an economy with a saving rate 𝑠 ¯ = 0.2 , a depreciation rate 𝑑 ¯ = 0.1 , and a population growth rate 𝑛 ¯ = 0.025 . TFP is 𝐴 ¯ = 8 and the capital income share is 𝛼 = 0.36 . You ...