For any economy with an existing capital stock of $800 million and annual depreciation of 5%...
For any economy with an existing capital stock of $800 million and annual depreciation of 5% a steady state occurs if
|
gross investment = $840 million |
||
|
gross investment = $1600 million |
||
|
gross investment = $40 million |
||
|
net investment = $5 million |
||
|
net investment = $800 million |
Homework Answers
Add Answer to:
For any economy with an existing capital stock of $800 million
and annual depreciation of 5%...
if the capital stock per worker is 8, the saving rate (s) is 12, the capital...
if the capital stock per worker is 8, the saving rate (s) is 12, the capital share (α) is 13 and the depreciation rate (δ) is 18 , then: a. the capital stock per worker will grow towards the steady state b. the capital stock per worker will shrink towards the steady state c. none d. investment per worker in the economy is larger than depreciation per worker e. the economy is not in the steady state yet
20. If a country's depreciation rate increased from 2 percent to 5 percent of physical capital and it was operating...
20. If a country's depreciation rate increased from 2 percent to 5 percent of physical capital and it was operating at its steady-state before the change, we would expect to see which of the following? I. a decrease in the steady-state per capita capital stock II. a decrease in the steady-state level of real GDP per capita III. a corresponding decrease in real population growth rate IV. an increase in capital stock A) All the above are correct. B) I,...
Assume an economy is populated by L workers with total capital stock K. Production of this...
Assume an economy is populated by L workers with total capital stock K. Production of this KL. Suppose household's saving rate s economy is organized by Y 0.6, and firm's depreciation rate of capital d = 0.1. The rule for accumulation of captial in per worker terms is of the time-to-build type: A k = i - ôk Standard Transformation of the Production Function a. Show that the production function is constant return to scale (CRS) b. Rewrite the production...
ALL OF THE QUESTIONS PLS!!! Assume an economy is populated by L workers with total capital stock K. Production of this...
ALL OF THE QUESTIONS PLS!!!
Assume an economy is populated by L workers with total capital stock K. Production of this KL. Suppose household's saving rate s economy is organized by Y 0.6, and firm's depreciation rate of capital d = 0.1. The rule for accumulation of captial in per worker terms is of the time-to-build type: A k = i - ôk Standard Transformation of the Production Function a. Show that the production function is constant return to scale...
good weekend! Problem 1 Assume an economy is populated by L workers with total capital stock...
good weekend! Problem 1 Assume an economy is populated by L workers with total capital stock K. Production of this economy is organized by Y = K L.. Suppose household's saving rate s = 0.6, and firm's depreciation rate of capital 8 = 0.1. The rule for accumulation of captial in per worker terms is of the time-to-build type: Ak=¿- Sk. Standard Transformation of the Production Function a. Show that the production function is constant return to scale (CRS). b....
1. An economy has the production function y = 20k1/2. The current capital stock is 256...
1. An economy has the production function y = 20k1/2. The current capital stock is 256 and the depreciation rate is 8 percent, and the population growth rate is 2 percent. For income per person to grow, the saving rate must exceed Question 1 options: 6 percent 8 percent 10 percent 12 percent Question 2 (1 point) 2. According to the Solow model, if an economy decreases its saving rate, then in the new steady state, compared to the old...
2. A car company currently has capital stock of $100 million and desires a capital stock...
2. A car company currently has capital stock of $100 million and desires a capital stock of $110 million. a. If it experiences no depreciation, how much will it need to invest to get to its desired level of capital stock? b. If its annual depreciation is 5%, how much will it need to invest to get to its desired level? c. If its annual depreciation is 10%, how much will it need to invest to get to its desired...
QUESTION 1 FIK) = UK Also this country has 800 units of capital. Assuming that the...
QUESTION 1 FIK) = UK Also this country has 800 units of capital. Assuming that the investment rate is 40%, and a Ler's assume that the country has the following production function Y depreciation rate of 4%, calculate the steady-state level of capital a. 25 b. 100 0.80 d. 200
Draw a steady-state diagram showing Britain before the industrial revolution. Label the capital stock in 1500...
Draw a steady-state diagram showing Britain before the
industrial revolution. Label the capital stock in 1500 through 1502
as well as
steady-state capital, steady-state investment, and steady-state
output.
Numbers #1.4-1.6
1 Technology and the Industrial Revolution Global Income, Maddison Historical Estimatas nd Re Suppose Britain's economy in the year 1500 is described by the following production function and parameters: s= 0.2 8 0.1 The capital stock is K1500 = 1 1.1. Fill in the following table, which will give us...
Consider an economy that is characterized by the Solow Model. The (aggregate) production function is given...
Consider an economy that is characterized by the Solow Model. The (aggregate) production function is given by: Y = 6K1/3L2/3 In this economy, workers consume 80% of income and save the rest. The labour force is growing at 2% per year while the annual rate of capital depreciation is 5.5%. a) Solve for the steady state capital-labour ratio and consumption per worker. The economy is in its steady state as described in part (a). Suppose both the stock of capital...
Assume an economy is populated by L workers with total capital stock K. Production of this KL. Suppose household's saving rate s economy is organized by Y 0.6, and firm's depreciation rate of capital d = 0.1. The rule for accumulation of captial in per worker terms is of the time-to-build type: A k = i - ôk Standard Transformation of the Production Function a. Show that the production function is constant return to scale (CRS) b. Rewrite the production...
ALL OF THE QUESTIONS PLS!!!
Assume an economy is populated by L workers with total capital stock K. Production of this KL. Suppose household's saving rate s economy is organized by Y 0.6, and firm's depreciation rate of capital d = 0.1. The rule for accumulation of captial in per worker terms is of the time-to-build type: A k = i - ôk Standard Transformation of the Production Function a. Show that the production function is constant return to scale...
good weekend! Problem 1 Assume an economy is populated by L workers with total capital stock K. Production of this economy is organized by Y = K L.. Suppose household's saving rate s = 0.6, and firm's depreciation rate of capital 8 = 0.1. The rule for accumulation of captial in per worker terms is of the time-to-build type: Ak=¿- Sk. Standard Transformation of the Production Function a. Show that the production function is constant return to scale (CRS). b....
QUESTION 1 FIK) = UK Also this country has 800 units of capital. Assuming that the investment rate is 40%, and a Ler's assume that the country has the following production function Y depreciation rate of 4%, calculate the steady-state level of capital a. 25 b. 100 0.80 d. 200
Draw a steady-state diagram showing Britain before the
industrial revolution. Label the capital stock in 1500 through 1502
as well as
steady-state capital, steady-state investment, and steady-state
output.
Numbers #1.4-1.6
1 Technology and the Industrial Revolution Global Income, Maddison Historical Estimatas nd Re Suppose Britain's economy in the year 1500 is described by the following production function and parameters: s= 0.2 8 0.1 The capital stock is K1500 = 1 1.1. Fill in the following table, which will give us...
Most questions answered within 3 hours.
-
A 79-Ω loudspeaker, a 8.0-Ω loudspeaker, and a 3.7-Ω loudspeaker
are connected in parallel across the...
asked 18 minutes ago -
If X has a normal distribution with mean µ =
12 and variance σ2 = 9,...
asked 26 minutes ago -
An example of an operational taxonomic unit
(OTU) is
a. Multiple sequence alignment.
b. Protein sequence....
asked 28 minutes ago -
Electrons flow through a 2.7-mm-diameter aluminum wire at
2.5×10−4 m/s .
How many electrons move through...
asked 28 minutes ago -
For a recent year, McDonald’s (MCD)
company-owned restaurants had the following sales and expenses (in
millions):...
asked 27 minutes ago -
In a sample of 15 men, the mean height was 171 cm. In a sample
of...
asked 28 minutes ago -
In this exercise, we will be refactoring a working program. Code
refactoring is a process to...
asked 2 hours ago -
3
researchers at Cambrige looked at 5,000 firms in Englans and found
that, in terms of...
asked 1 hour ago -
why it is important and how it integrates within ERP? And what
the core challenges of...
asked 3 hours ago -
A strawberry farmer determines that the average weight of
individual strawberries produced by plants in his...
asked 4 hours ago -
Chargaff's results yielded a molar ratio of 0.400 for A to G in
avian tubercle bacillus...
asked 6 hours ago -
Which of the following binds ATP/ADP?
a. microfilaments
b. microtubules
c. intermediate filaments
d. microfilaments and...
asked 6 hours ago