In this same country, 8%of the capital stock depreciates each year. Additionally, the ecnonmy consumes 60% of output.
A)When K=500 is the captial stock growing or shrinking?
B)When K=400 is the captial stock growing or shrinking?
C)Solve for steady-state level of captial and output
D)What savings rate would be necessary to achieve a steady-state output of 150?