Select the last option (Doubling TFP)
We know that a country reaches a steady state when investment equals depreciation. This means Consider...
2. Suppose we know the following about Countries 1 and 2: Country l's production function is yı = A (k)", Country 2's production function is y2 = A2(k)", where y = output per capita, k = kapital per capita, A = productivity factor, and A1 > 12. At steady state kz > ki, where kj, ki, are steady state kapital per capita of Countries 2 and 1, respectively. Given the above information, what can we conclude about Country 2's output...
1. Consider a country that is initially in steady state. Suppose the saving rate increases. Moreover, the population growth rate increases by 1% but the capital depreciation rate falls by 1%. According to the Solow–Swan model, the per capita capital stock increases, and the country moves to a new, higher steady state level of per capita income. Answer true, false, or uncertain. Please briefly explain your answer. 2. Consider the country of Solow, which is described by the Solow–Swan model....
A and B only Consider the Solow growth model with the following production function where y is output. K is capital, s is the productivity and is labor. Assume that 0 < α < 1 Further, suppose that labor grows at a constant rate n. That is. 1 + n. Also, assume that capital depreciates at rate d and that gross investment in capital is fraction s of output. a Letting k-N, obtain the law of motion for capital accumulation...
pls solve parts f,g,h Suppose Country X's initial capital per effective worker (K/AN) ratio is 16, while Country Z's initial capital per effective worker (KAN) ountries have the same production function: F(K, A,N) = 10K, 5(AN)05 (a) Derive the output per effective worker. The evolution of the capital stock is given by K +1 = (1 - 6)K, + I, where is the depreciation rate. (b) Derive and show that in the long-run growth model, the steady state capital per...
everything but part a Problem Set 8 1. (Population growth but no technology growth) Consider an economy that is described by the production function Y = K L. Moreover the de preciation rate of capital is 8 = 0.05 and the population growth rate is n=0.05 (there is no technology growth) (a) What is the per-worker production function, that is y = ¥? What is the marginal product of capital, that is 8X? (b) If the saving rate is 8...
1. Imagine that you are hired by the president of the country of Bogatya as an economic adviser. Currently the country is enjoying a constant but comfortably high standard of living. However, the neighboring country of the Republic of Orania is extremely poor. a. Your initial analysis of the economic data from the region leads you to discover that Bogatya has a much higher level of total factor productivity (A) than Orania but otherwise the two countries seem very similar...
1. Consider the simple version of the Solow Growth Model discussed in class summarized by these four equations: Consumers save a fraction s of output: 1 = sy Capital grows as follows: K' = 1 + (1 - 8)K Firms use capital to make output: Y = AK 0.3 There is no government or trade: Y = C+/ where Y is GDP, / is investment, C is consumption, s is the savings rate, K is the capital stock this year,...
Consider a cylindrical capacitor like that shown in Fig. 24.6. Let d = rb − ra be the spacing between the inner and outer conductors. (a) Let the radii of the two conductors be only slightly different, so that d << ra. Show that the result derived in Example 24.4 (Section 24.1) for the capacitance of a cylindrical capacitor then reduces to Eq. (24.2), the equation for the capacitance of a parallel-plate capacitor, with A being the surface area of...
I need Summary of this Paper i dont need long summary i need What methodology they used , what is the purpose of this paper and some conclusions and contributes of this paper. I need this for my Finishing Project so i need this ASAP please ( IN 1-2-3 HOURS PLEASE !!!) SPECIAL ARTICLES tole of Monetary Policy C Rangarajan What should be the objectives of monetary policy? Does the objective of price stability conflict with the goal of achieving...