Consider an AK growth model where the growth rate of per-capita output, population growth rate, and depreciation rate are 4%, 2%, and 4%, respectively. If the productivity parameter is 0.5, then the savings rate (in %) is ________ (in integer).
IIT JAM 2026 Question 47: Endogenous growth and technical progress
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Consider an AK growth model where the growth rate of per-capita output, population growth rate, and depreciation rate are 4%, 2%, and 4%, respectively. If the productivity parameter (A) is 0.5, then the savings rate (in %) is (*in integer*).
Endogenous growth and technical progress has come up 25 times in 6 exams since 2016.
What this question tests
This question is on Endogenous growth: AK and R&D models, part of Endogenous growth and technical progress in Economics of Growth and Development.
Models where long-run growth comes from within the model, from capital or from ideas.
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