Explain and express how did the calculation transform from the top to bottom.
Homework Answers
K*/N = 0.25(s/)2
= (25/100)(s/)2
= (1/4)(s/)2
= (1/22)(s/)2
= (s/2)2
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Explain and express how did the calculation transform from the
top to bottom.
Now, the steady-state...
Questions: 1. In the French town of Louisbourg, (now part of Nova Scotia), in 1757, the...
Questions: 1. In the French town of Louisbourg, (now part of Nova Scotia), in 1757, the aggregate production function per worker was y Ako 75 Louisbourg's workers save a fraction, s, of their incomes, so aggregate savings is given by S sY. 1a. If the savings rate, population growth, depreciation rate and productivity are: s 0.25 n 0.15, d 0.10, A 4, then what was the steady-state capital-labour ratio k* and kGolden Given k*, what are steady-state output per-worker, y*,...
1. In the French town of Louisbourg, (now part of Nova Scotia), in 1757, the aggregate...
1. In the French town of Louisbourg, (now part of Nova Scotia), in 1757, the aggregate production function per worker was y = Ak^0.75. Louisbourg’s workers save a fraction, s, of their incomes, so aggregate savings is given by S = sY. 1a. If the savings rate, population growth, depreciation rate and productivity are: s = 0.25, n = 0.15, d = 0.10, A = 4, then what was the steady-state capital-labour ratio k* and k^Golden. Given k*, what are...
Refer to the figure above. Suppose this economy is currently in steady state. Now, suppose that...
Refer to the figure above. Suppose this economy is currently in steady state. Now, suppose that population growth slows down. That is, population grows at a slower rate than it was growing before. Which of the following statements must be correct? Once the economy reaches a new stead state, capital per effective worker will equal D More information is needed in order to know what capital per effective worker will be once the economy reaches a new steady state. Once...
QUESTION 18 Say that the economy is in steady state. Assume now that the government implements...
QUESTION 18
Say that the economy is in steady state. Assume now that the
government implements an important educational program that makes
college more accessible to the population. As a result, there is an
improvement of technology and productivity in the economy. The
other parameters in the economy remain constant. Comparing the new
steady state with the original steady state, you can claim that
output per worker and capital per worker have risen
output per worker has risen, but capital...
3. (Steady state in the Solow model) Consider two economies identical in everything except the production...
3. (Steady state in the Solow model) Consider two economies identical in everything except the production function. Economy 1 has a production function F(K, L)KoL1-a, economy 2 has a production function G(K, L)-aK(1-a)L. For both economies capital grows according to (1). a) Write output per worker as a function of capital per worker for both economies. b) Compute the steady state value of capital per worker for both these economies or, if it does not exist, show graphically that it...
3. (Steady state in the Solow model) Consider two economies identical in everything except the production...
3. (Steady state in the Solow model) Consider two economies identical in everything except the production function. Economy 1 has a production function F(K, L) KL,economy 2 has a production function G(K, L) aK1 - a)L. For both economies capital grows according to (1). a) Write output per worker as a function of capital per worker for both economies. b) Compute the steady state value of capital per worker for both these economies or, if it does not exist, show...
(Steady state in the Solow model) Consider two economies identical in everything except the production function.
3. (Steady state in the Solow model) Consider two economies identical in everything except the production function. Economy 1 has a production function \(F(K, L)=K^{\alpha} L^{1-\alpha}\), economy 2 has a production function \(G(K, L)=\alpha K+(1-\alpha) L\). For both economies capital grows according to (1).a) Write output per worker as a function of capital per worker for both economies.b) Compute the steady state value of capital per worker for both these economies or, if it does not exist, show graphically that...
1. Solow growth model: a. Draw the steady-state equilibrium by drawing the savings line and the...
1. Solow growth model: a. Draw the steady-state equilibrium by drawing the savings line and the investment line. Show the steady-state values of savings, investment and capital per worker. b. On the same graph, also draw the output per worker (or per-worker production function) line. At the steady-state, mark the level of consumption per worker and savings per worker. c. What is the growth rate of yt, Ct, kt (per-worker variables, represented with an "upperbar" in class) in the steady-state?...
Solow growth model: 1. a. Draw the steady-state equilibrium by drawing the savings line and the...
Solow growth model: 1. a. Draw the steady-state equilibrium by drawing the savings line and the investment line. Show the steady-state values of savings, investment and capital per worker. b. On the same graph, also draw the output per worker (or per-worker production function) line. At the steady-state, mark the level of consumption per worker and savings per worker. c. What is the growth rate of yYt, Ct, kt (per-worker variables, represented with an "upperbar" in class) in the steady-state?...
10. Using th e graph below, explain what happens to the steady-state capital per worker (k*)...
10. Using th e graph below, explain what happens to the steady-state capital per worker (k*) if there is an increase in the savings rate. Investment, Depreciation Depreciation 5k Investment sF(k) kCapital per effective worker
Questions: 1. In the French town of Louisbourg, (now part of Nova Scotia), in 1757, the aggregate production function per worker was y Ako 75 Louisbourg's workers save a fraction, s, of their incomes, so aggregate savings is given by S sY. 1a. If the savings rate, population growth, depreciation rate and productivity are: s 0.25 n 0.15, d 0.10, A 4, then what was the steady-state capital-labour ratio k* and kGolden Given k*, what are steady-state output per-worker, y*,...
QUESTION 18
Say that the economy is in steady state. Assume now that the
government implements an important educational program that makes
college more accessible to the population. As a result, there is an
improvement of technology and productivity in the economy. The
other parameters in the economy remain constant. Comparing the new
steady state with the original steady state, you can claim that
output per worker and capital per worker have risen
output per worker has risen, but capital...
3. (Steady state in the Solow model) Consider two economies identical in everything except the production function. Economy 1 has a production function F(K, L)KoL1-a, economy 2 has a production function G(K, L)-aK(1-a)L. For both economies capital grows according to (1). a) Write output per worker as a function of capital per worker for both economies. b) Compute the steady state value of capital per worker for both these economies or, if it does not exist, show graphically that it...
3. (Steady state in the Solow model) Consider two economies identical in everything except the production function. Economy 1 has a production function F(K, L) KL,economy 2 has a production function G(K, L) aK1 - a)L. For both economies capital grows according to (1). a) Write output per worker as a function of capital per worker for both economies. b) Compute the steady state value of capital per worker for both these economies or, if it does not exist, show...
3. (Steady state in the Solow model) Consider two economies identical in everything except the production function. Economy 1 has a production function \(F(K, L)=K^{\alpha} L^{1-\alpha}\), economy 2 has a production function \(G(K, L)=\alpha K+(1-\alpha) L\). For both economies capital grows according to (1).a) Write output per worker as a function of capital per worker for both economies.b) Compute the steady state value of capital per worker for both these economies or, if it does not exist, show graphically that...
1. Solow growth model: a. Draw the steady-state equilibrium by drawing the savings line and the investment line. Show the steady-state values of savings, investment and capital per worker. b. On the same graph, also draw the output per worker (or per-worker production function) line. At the steady-state, mark the level of consumption per worker and savings per worker. c. What is the growth rate of yt, Ct, kt (per-worker variables, represented with an "upperbar" in class) in the steady-state?...
Solow growth model: 1. a. Draw the steady-state equilibrium by drawing the savings line and the investment line. Show the steady-state values of savings, investment and capital per worker. b. On the same graph, also draw the output per worker (or per-worker production function) line. At the steady-state, mark the level of consumption per worker and savings per worker. c. What is the growth rate of yYt, Ct, kt (per-worker variables, represented with an "upperbar" in class) in the steady-state?...
10. Using th e graph below, explain what happens to the steady-state capital per worker (k*) if there is an increase in the savings rate. Investment, Depreciation Depreciation 5k Investment sF(k) kCapital per effective worker
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