What was this nations incremental capital-ouput ratio

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In year 0, Nation A's GDP was $200 billion and it had $600 billion worth of capital stock at the end od the year. In year 1, Nation A's GDP grew to $210 billion and its investment (saving) was $50billion. The rate of depreciation is 5%. Show your computations.

(a) what was the GDP growth rate in year1

(b) what was this nation's average capital-ouput ratio in year 0?

(c) what was this nation's incremental capital-ouput ratio in year1?

(d) If this nation's investment (and saving) in year1 had been $60billion and the incremental capital-output ratio was the same as in (c), what would have been its GDP growth rate that year?

Reference no: EM13985954

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