Imagine an economy with production function Y = F(K) = and 400 units of capital. If the fraction of output invested in new capital is γ = 0.2, the depreciation rate is δ = 0.05, and the economy starts with output of 20, what does the Solow model predict will happen to output in the long run?

add 5 subtract 1

step-by-step explanation:

all three statements are true

step-by-step explanation:

a shipping fee of 5% is charged online with every item purchased online

first let's just take each option and calculate them based on this, to see if the answers matched

keith buys a 40 dollar book

40 x 0.05 = 2

therefore there will be a two dollar fee on keith's book

40 + 2 =42

the first statement is true

a chair costs $80

80 x 0.05 = 4

80 + 4 = 84

the second statement is true

george buys a 20 dollar calculator

20 x 0.05 = 1

20 + 1 = 21

the third statements are true

all three statements are true

she will do 520 after 52 weeks

hope this : )