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PEA 2026Question 28mcqModerate

Solow economy with Y=K1/2L1/2Y = K^{1/2} L^{1/2}, no depreciation, n=0.02n = 0.02, savings rate s>0s > 0. If the steady-state capital--labour ratio is k=9k^* = 9 and the current ratio is k=1k = 1, then the growth rate of y=Y/Ly = Y/L at the current date is