Problem
An economy has a saving rate of s= .08, a depreciation rate of .02, a population growth rate of n= .03, and a growth rate of effective labor of g= .05.
a. What is the capital-output ratio, k/y, for this economy?
b. What is the growth rate for the capital-output ratio K/L?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.