Economic growth (I): basics - What about consumption?
3 important questions on Economic growth (I): basics - What about consumption?
What does savings equal in a steady state?
In what four steps does one find the golden values of macroeconomic variables?
2. Draw requirement line
3. Find the point where slope production function equals slope requirement line. This yields K*gold, Y*gold and C*gold
4. actual savings curve intersects requirement line @ K*gold
Why is a steady state called dynamically efficient if s<sgold?
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