462
MACROECONOMICS
25.
For the derivation of the feasible production function case,
see Appendix 16.1, Section G.
26.
From Eq. (16.11), (
y/y
)
=
(
k / k
)
.
Less formally, increases
in
y
are related to increases in
k
as depicted in Figure 16.2
which implies that
y
/
y
is proportional to
k/k.
27.
See the derivation to Eq. (16.19).
28.
For the case of the feasible production function, see
Appendix 16.1, Section I.
29.
We derived this expression while exploring the curvature of
the production function depicted in Figure 16.2.
30.
The golden rule gets its nomenclature from the maxim that
“Do not do unto others ...
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