[15 marks ] Use the production function representation of the Malthusian Model, to analyse what happens...
[15 marks ] Use the production function representation of the Malthusian Model, to analyse what happens to population and living standards in a medieval agricultural society when a newly introduced technology is LESS effective (produces less output) than the old technology used before
Homework Answers
According to malthus,increase in population id just due to technological advacement with no long run change in the standard of living. As new technology comes up, it will increase the population , so it will increase the population but will not affect living standards of population of economy. Population is increased but it produces less output. It is not sufficient output to produce sufficient technology.
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[15 marks ] Use the production function representation of the
Malthusian Model, to analyse what happens...
Use the production function representation of the Malthusian Model introduced in the lecture, to analyse what...
Use the production function representation of the Malthusian Model introduced in the lecture, to analyse what happens to population and living standards in a medieval agricultural society when a newly introduced technology is less effective (produces less output) than the old technology used before.
Use a production function and the subsistence line from the Malthusian model to show that an...
Use a production function and the subsistence line from the Malthusian model to show that an advance in technology does not affect output per worker in the long run. Explain your diagram clearly.
The following problem is based on the idea of a Malthusian trap. Thomas Malthus, an 18th...
The following problem is based on the idea of a Malthusian trap. Thomas Malthus, an 18th century British cleric and scholar, argued that as population increases, the limited amount of natural resources will lead societies into a trap of gradually decreasing standard of living, thus negating the effects of any technological progress. We can study this idea using the Solow model framework. Consider a modified version of the Solow growth model where the aggregate production function in period t is...
5. Calibrated Cobb-Douglas Growth Model Assume an economy has the following production function: Y = F(K,...
5. Calibrated Cobb-Douglas Growth Model Assume an economy has the following production function: Y = F(K, AL) = K 0.4 (AL)0.6. (a) Write down the production function per effective worker. (20 marks) (b) For this economy, the savings rate is 20%, the depreciation rate is 10% per year, the population growth rate is 2% per year, and the technology growth rate is 3% per year. Calculate the steady-state capital stock per effective worker, output per effective worker, and consumption per...
2. (15 pts). Assume that the per-worker production function is y, 5.k Further, assume that the...
2. (15 pts). Assume that the per-worker production function is y, 5.k Further, assume that the saving rate, s = 0.2, the depreciation rate, 8 0.04, and the population growth rate, n- 0. Calculate the following: (a) The steady-state values of the capital-labor ratio, k", output per worker, y, and consumption, c'. (b) The new steady-state values of the capital-labor ratio, output, and consumption (k, yi, and ci), if there is population growth so that n: 0.06. (c) Show your...
Find and explain questions 1-3 Using an AD/AS model, describe what happens to the price level...
Find and explain questions 1-3
Using an AD/AS model, describe what happens to the price level and output in Canada in the short run as a major hurricane destroys important Canadian production plants. Assume that the economy starts in a long-and short-run macroeconomic equilibrium. a) Price and output increase. b) Price and output decrease. c) Price increases and output decreases. d) Price decreases and output increases. Using an AD/AS model, describe what happens to the price level and output in...
3. (15 pts). Assume that the per-worker production function is yr = 20 k'. Further, assume...
3. (15 pts). Assume that the per-worker production function is yr = 20 k'. Further, assume that the saving rate, s = 0.1, the depreciation rate, = 0.125, and the population growth rate, n= 0. Calculate the following: (a) The steady-state values of the capital-labor ratio, k", output per worker, y, and consumption, c. (b) The new steady-state values of the capital-labor ratio, output, and consumption (ki. Yi, and ci) if there is a technological progress and A increases from...
2 Endogenous Growth Theory (5 marks) In the AK model with production function Y = AK....
2 Endogenous Growth Theory (5 marks) In the AK model with production function Y = AK. Assume g- is fixed. The saving rate is s and the depreciate rate of capital of. = 0 and p a. What is the growth rate of capital (K) and output (Y)? b. Under what conditions can the economy experience perpetual (positive) growth? c. What is the key factor that drives the perpetual growth? Explain the intuition. (hint: compare the AK model with the...
An island country is a closed, no government, and no storage economy. There is a fixed...
An island country is a closed, no government, and no storage economy. There is a fixed amount of land in this island. The aggregate production function requires land and labor inputs as following: Y = zF(L, N), where Y is the total output, z is the total factor productivity, L denotes total size of land, and N denotes labor size for thecurrent period. F (L, N) is a diminishing return to scale production function. Let C denote aggregate consumption and...
Question #3: Solow Model with Technological Progress Suppose than the economy's per effective worker production function...
Question #3: Solow Model with Technological Progress Suppose than the economy's per effective worker production function is given by y=Ros. Assume that the savings rate (8) is equal to 16 percent, the depreciation rate (8) is equal to 10 percent, the population growth rate (n) is equal to 2 percent and the rate of technological growth (g) is equal to 4 percent. (a) Find the steady-state value of capital per effective worker (K). (b) Find the steady-state value of output...
5. Calibrated Cobb-Douglas Growth Model Assume an economy has the following production function: Y = F(K, AL) = K 0.4 (AL)0.6. (a) Write down the production function per effective worker. (20 marks) (b) For this economy, the savings rate is 20%, the depreciation rate is 10% per year, the population growth rate is 2% per year, and the technology growth rate is 3% per year. Calculate the steady-state capital stock per effective worker, output per effective worker, and consumption per...
2. (15 pts). Assume that the per-worker production function is y, 5.k Further, assume that the saving rate, s = 0.2, the depreciation rate, 8 0.04, and the population growth rate, n- 0. Calculate the following: (a) The steady-state values of the capital-labor ratio, k", output per worker, y, and consumption, c'. (b) The new steady-state values of the capital-labor ratio, output, and consumption (k, yi, and ci), if there is population growth so that n: 0.06. (c) Show your...
Find and explain questions 1-3
Using an AD/AS model, describe what happens to the price level and output in Canada in the short run as a major hurricane destroys important Canadian production plants. Assume that the economy starts in a long-and short-run macroeconomic equilibrium. a) Price and output increase. b) Price and output decrease. c) Price increases and output decreases. d) Price decreases and output increases. Using an AD/AS model, describe what happens to the price level and output in...
3. (15 pts). Assume that the per-worker production function is yr = 20 k'. Further, assume that the saving rate, s = 0.1, the depreciation rate, = 0.125, and the population growth rate, n= 0. Calculate the following: (a) The steady-state values of the capital-labor ratio, k", output per worker, y, and consumption, c. (b) The new steady-state values of the capital-labor ratio, output, and consumption (ki. Yi, and ci) if there is a technological progress and A increases from...
2 Endogenous Growth Theory (5 marks) In the AK model with production function Y = AK. Assume g- is fixed. The saving rate is s and the depreciate rate of capital of. = 0 and p a. What is the growth rate of capital (K) and output (Y)? b. Under what conditions can the economy experience perpetual (positive) growth? c. What is the key factor that drives the perpetual growth? Explain the intuition. (hint: compare the AK model with the...
Question #3: Solow Model with Technological Progress Suppose than the economy's per effective worker production function is given by y=Ros. Assume that the savings rate (8) is equal to 16 percent, the depreciation rate (8) is equal to 10 percent, the population growth rate (n) is equal to 2 percent and the rate of technological growth (g) is equal to 4 percent. (a) Find the steady-state value of capital per effective worker (K). (b) Find the steady-state value of output...
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