Please Complete this

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Answered Same DayOct 13, 2021

Answer To: Please Complete this

Komalavalli answered on Oct 14 2021
125 Votes
A
i)
BGP = g - n
g = gg/1-α
= β/1-α
i) β = 0
g = gg/1-α
= 0/1-α = 0
BGP = g - n
BGP = g – 0

BGP = g
The growth rate of output per worker at BGP is g for β =0.This indicates a positive growth
ii)
β > 0
g = gg/1-α
= β /1-α = β /1- α
BGP = g - n
BGP = (1/1- α)*(gg- β n)
BGP = (1/1- α)*(gg- β n)
The growth rate of output per worker at BGP is (1/1- α)*(gg- β n) for β >0.
iii)
BGP = g - n
g = gg/1-α
= β/1-α
i) g= 0
g = 0/1-α =0
= β /1-α = 0
BGP = 0 - n
BGP = -n
BGP =- n
The growth rate of output per worker at BGP is -n for g...
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