Upper K Subscript tKt
=
Capital stock at the beginning of year t
Upper K Subscript t plus 1Kt+1
=
Capital stock at the beginning of year t + 1
Upper Y Subscript tYt
=
Output in year t
N
=
The number of workers in the economy
deltaδ
=
Rate of depreciation of capital per year
s
=
Saving rate
where
Upper K Subscript t plus 1 Baseline equals left parenthesis 1 minus delta right parenthesis Upper K Subscript t Baseline plus s Upper Y Subscript tKt+1 = (1 − δ) Kt + s Yt
Given this information, complete the following equation using only the variables given above.
Part 2
StartFraction Upper K Subscript t plus 1 Over Upper N EndFraction minus StartFraction Upper K Subscript t Over Upper N EndFraction
Kt+1
N −
Kt
N = enter your response here. (Properly format your expression using the tools in the palette. Hover over tools to see keyboard shortcuts. E.g., a subscript can be created with the _ character.)
