Question

An economy has a Cobb–Douglas production function:

=K()1−α

The economy has a capital share of 0.30, a saving rate of 43 percent, a depreciation rate of 3.25 percent, a rate of population growth of 1.25 percent, and a rate of labor-augmenting technological change of 3.0 percent. It is in steady state.

Answer 1

The subject of this question is Economics. It is asking about the per capita production function, which calculates GDP per person by taking into account the population.

Step-by-step explanation:

The subject of this question is Economics. The question is related to the Cobb-Douglas production function, which is a concept in economics that describes the relationship between inputs (capital and labor) and output (GDP). In this case, the question is asking about the per capita production function, which takes into account the population to calculate GDP per person.