II. Long Problems 1. An economy has the production function Y-AKL where Y represents real output,...

Question

Question

II. Long Problems 1. An economy has the production function Y-AKL where Y represents real output, K is capital L is labor and

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

$Дk = sy - SK = 0 \2 0.25х8k X 36 - о. 2- - - 0.2K in 4 ко- к - 5Co ~12 - - 8X 36o (36) — 81 36o 16 С - — 1+, 28o J С - 025) x$

Add a comment

Answer 2

Similar Homework Help Questions

1. Production possibility frontiers usually exhibit _________________ marginal ________________. 2. Anne can catch 10 fish in...

1. Production possibility frontiers usually exhibit _________________ marginal ________________. 2. Anne can catch 10 fish in a day or pick 5 coconuts while Nancy can catch 12 fish or pick 9 coconuts. For each fish and coconuts, say who has an absolute advantage and who has a comparative advantage. 3. The gains from specialization are limited by the extent of ______________________. 4. We assume that production functions exhibit ___________________ marginal product of all inputs. 5. List the 3 categories of...
1. Let the production function for an economy by given by Y=AK1/2L1/2 where Y is output,...

1. Let the production function for an economy by given by Y=AK1/2L1/2 where Y is output, K is capital, L is labor and A is “ideas.” a. If L=25, A=10, the savings rate is ¼ and the depreciation rate is ½, what will the steady-state values of output, capital and consumption be? b. On a graph, show what will happen to steady-state output and capital of there is a decrease in the depreciation rate. 2. As capital increases, the marginal...
Let the production function for an economy be Y-AK1/2_1/2 where Y is output, K is capital,...

Let the production function for an economy be Y-AK1/2_1/2 where Y is output, K is capital, L is labor and A is "ideas." If A=4, L=100, the savings rate is 1/5 and the depreciation rate is 1/3, find the steady-state levels of capital, output and consumption. [Answers are all whole numbers.] KE

Suppose that an economy has the per-worker production function given as: y = 345 where y...

Suppose that an economy has the per-worker production function given as: y = 345 where y is output per worker and kis capital per worker. In addition, national savings is given as: S, = 0.3Y where S is national savings and Y is total output Use the production and savings functions on your left and the depreciation and population growth rates below to answer the following questions. (Round all numerical responses to one decimal place.) Depreciation rate (d) = 0.1...
Need help with these questions. With explanations if possible! 1. Let the production function for an...

Need help with these questions. With explanations if possible! 1. Let the production function for an economy by given by Y=AK1/2L1/2 where Y is output, K is capital, L is labor and A is “ideas.” a. If L=25, A=10, the savings rate is ¼ and the depreciation rate is ½, what will the steady-state values of output, capital and consumption be? b. On a graph, show what will happen to steady-state output and capital of there is a decrease in...
Suppose that an economy has the per-worker production function given as: y = 4k., where y...

Suppose that an economy has the per-worker production function given as: y = 4k., where y is output per worker and k is capital per worker. In addition, national savings is given as: S, = 0.10Y, where S is national savings and Y is total output. The depreciation rate is d = 0.10 and the population growth rate is n = 0.10. The steady-state value of the capital-labor ratio, kis 4.00. The steady-state value of output per worker, y is...

An economy has a Cobb-Douglas production function: Y = Ka(LE)(1-a). The economy has a capital share...

An economy has a Cobb-Douglas production function: Y = Ka(LE)(1-a). The economy has a capital share of a third (means a= 1/3), a saving rate of 24 percent, a depreciation rate of 3 percent, and a rate of labor-augmenting technological change of 1 percent. It is in steady state. a. At what rate does total output, output per worker, and output per effective worker grow? b. Solve for steady state capital per effective worker, output per effective worker, consumption per...
1) Consider an economy with the following the production function: Y = F(K,L) = K^0.4L^0.6 a)...

1) Consider an economy with the following the production function: Y = F(K,L) = K^0.4L^0.6 a) Find output per worker b) Find the marginal product of capital c) Find the steady state level of capital per worker given a savings rate of 0.1, the depreciation rate of 0.2, and population growth of 0.05 d) Show graphically or analytically what will happen if there is a decrease in the rate of depreciation. What effect does this have on steady-state levels of...
An economy produces with the production technology Y = F(K, EL) = K^1/3 (EL)^2/3, where E...

An economy produces with the production technology Y = F(K, EL) = K^1/3 (EL)^2/3, where E is a labor-augmenting technology. Population grows at 2% per year and E grows at 3% per year. The depreciation rate is 5% and the saving rate is 40%. The economy is in steady state. a. What is the growth rate of each of the following: K/EL, Y/EL, EL, Y, Y/L, K/Y, C b. At what rate do wages and the capital rental rate grow?...

A closed economy can be described by the long-run classical model: Y = 2KαL1–α C =...

A closed economy can be described by the long-run classical model: Y = 2KαL1–α C = 18500 + 0.75(Y – T) – 800r I(r) = 11000 – 1200r Note: r represents the real interest rate and is measured in percentage points (for example, if we find r = 10, then r is interpreted as being equal to 10%). Keep your answer to 4 decimal places if needed. Assume that there are two factors of production, capital (K) and labour (L),...

II. Long Problems 1. An economy has the production function Y-AKL where Y represents real output,...

Homework Answers

Add Answer to:
II. Long Problems 1. An economy has the production function Y-AKL where Y represents real output,...

Post as a guest

Earn Coins

1. Production possibility frontiers usually exhibit _ marginal . 2. Anne can catch 10 fish in...

1. Let the production function for an economy by given by Y=AK1/2L1/2 where Y is output,...

Let the production function for an economy be Y-AK1/2_1/2 where Y is output, K is capital,...

Suppose that an economy has the per-worker production function given as: y = 345 where y...

Need help with these questions. With explanations if possible! 1. Let the production function for an...

Suppose that an economy has the per-worker production function given as: y = 4k., where y...

An economy has a Cobb-Douglas production function: Y = Ka(LE)(1-a). The economy has a capital share...

1) Consider an economy with the following the production function: Y = F(K,L) = K^0.4L^0.6 a)...

An economy produces with the production technology Y = F(K, EL) = K^1/3 (EL)^2/3, where E...

A closed economy can be described by the long-run classical model: Y = 2KαL1–α C =...

II. Long Problems 1. An economy has the production function Y-AKL where Y represents real output,...

Homework Answers

Add Answer to: II. Long Problems 1. An economy has the production function Y-AKL where Y represents real output,...

Post as a guest

Earn Coins

Add Answer to:
II. Long Problems 1. An economy has the production function Y-AKL where Y represents real output,...