Answer the following questions based on the given informationOriginal K = $45 billionOriginal L = 12.5 milliond = 6%L growth = 2.5%K= value of kapital; L = Labor force; d = Depreciation1. What is the original K/L ratio?2. After 1 year, given depreciation and the growth in the labor force, what is the new K/L ratio?3. How much gross investment is necessary to bring the K/L ratio back to its original level? a. what % of the original level of Kapital is this gross investment? b. How much gross investment is necessary per unit of additional labor?4. In order to achieve a target growth in the original K/L ratio of 4%, how much net investment is necessary?
Answer the following questions based on the given information Original K = $45 billion Original L = 12.5 million d = 6% L growth = 2.5% K= value of kapital; L = Labor force; d = Depreciation 1. What i
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