Consider the Romer model. Y = (A LY)1-αKα with α=0.25, L=100…

Questions

Cоnsider the Rоmer mоdel. Y = (A LY)1-αKα with α=0.25, L=1000, LY=0.75L. =0.3 (0.25L)0.2A0.5 аnd = 0.4Y – 0.006K. In the steаdy stаte, the growth rate of labor is 1%. What is the steady-state value of capital output ratio, K/Y?

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