Question: an economy has a cobb-douglas production function?
Answer: An economy has a Cobb-Douglas production function: Y = Kα(LE)^1−α. ... The economy has a capital share of a third, a saving rate of 24 percent, a depreciation rate of 3 percent, a rate of population growth of 2 percent, and a rate of labor-augmenting technological change of 1 percent. It is in steady state.