List of top Macroeconomics Questions on Growth models

Consider the Solow growth model in which output (Y) is determined by the production function Y_t = 0.2K_t + 0.8L_t, where K and L denote capital and labour used in the production process, and t depicts time. The depreciation is given by δK_t, where δ = 0.2. Saving is given by sY_t, where s = 0.5. Assume that the population does not grow with time. The steady state capital per unit of labour is ______ (in integer).

Using the following table,

Year	Population of the Economy	GDP of the Economy (in crore)
2010	20,000	25,000
2020	25,000	40,000

the average growth rate (compounded annually) of per capita GDP in an economy during the period 2010-2020 is ________ (in percent, round off to 2 decimal places).