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ssume a closed economy without a government has a following production function The population grows at...
In the Solow growth model without population growth, if an economy has a steady-state value of...
In the Solow growth model without population growth, if an economy has a steady-state value of the marginal product of capital (MPK) of 0.125, a depreciation rate of 0.1, and a saving rate of 0.225, then the steady-state capital stock per worker: Select one: a. is less than the Golden Rule level. O b. is greater than the Golden Rule level. c. could be either above or below the Golden Rule level. d. equals the Golden Rule level.
1. Assume that an economy described by a Solow model has a per-worker production function given...
1. Assume that an economy described by a Solow model has a per-worker production function given by y- k05, where y is output per worker and k is capital stock per worker (capital-labor ratio). Assume also that the depreciation rate δ is 5%. This economy has no technological progress and no population growth (n 0). Both capital and labor are paid for their marginal products and the economy has been in a steady state with capital stock per worker at...
Assume that a country's production function is Y = AK0.3L0.7. The ratio of capital to output...
Assume that a country's production function is Y = AK0.3L0.7. The ratio of capital to output is 4, the growth rate of output is 3 percent, and the useful life of capital is 20 years. 'A' is a technology constant that contributes to GDP (Y). A = 1 a) What is the marginal product of capital in this situation? b) If the economy is in a steady state, what must be the saving rate? c) If the economy decides to...
3) Consider a closed economy in which the population grows at the rate of 1% per...
3) Consider a closed economy in which the population grows at the rate of 1% per year. The per-worker production function is y = 6k 12, where y is output per worker and k is capital per worker. The depreciation rate of capital is 14% per year. a. Households consume 90% of income and save the remaining 10% of income. There is no government. What are the steady-state values of capital per worker, output per worker, consumption per worker, and...
(24) Consider a closed economy in which the population grows at the rate of 2% per...
(24) Consider a closed economy in which the population grows at the rate of 2% per year. The depreciation rate of capital is 10% per year. The saving rate is 10% The per-worker production function is Yt = 4.8k0.5, where y is output per worker and k is capital per worker. The steady state growth rate of output per worker is equal to (A) 0% (B) 2% (C) 8% (D) 10% (25) Consider a closed economy in which the population...
Consider a closed economy in which the population grows at the rate of 2% per year....
Consider a closed economy in which the population grows at the rate of 2% per year. The per-worker production function is given as where is output per worker and kis capital per worker. The depreciation rate of capital is 18.00% per year Suppose that households consume 75% of income and save the remaining 25%. There is no government (Enter all response is integers or decimals rounded to one place as appropriate. What is the steady-state value of capital per worker?k=
Consider the following production function for an economy: 1. Y=2K1/4L3/4 (a) Suppose the capital stock is...
Consider the following production function for an economy: 1. Y=2K1/4L3/4 (a) Suppose the capital stock is K = 16 and its labour force is L = 1. Find: (i) GDP; (ii) the marginal product of capital; (iii) the real rental price of capital; (iv) labour's share of income. (b) Suppose further that aggregate consumption (C) is 80 per cent of disposable income, government spending is G = 1, the budget is balanced, and private sector investment is I = 6...
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...
Consider an economy with the following production function zf(k ∗ ) = z (k ∗ )^0.5...
Consider an economy with the following production function zf(k ∗ ) = z (k ∗ )^0.5 1. Solve for golden rule capital per worker and optimal savings rate using the equation characterizing the best steady state. Then, you can back out optimal saving rate given that the best capital per worker. 2. Assume that we are at the steady state with a saving rate s1 < sgold. If the government increases the saving rate up to sgold through policies, what...
all but part a 2. (Population growth and technology growth) Consider an economy that is described...
all but part a
2. (Population growth and technology growth) Consider an economy that is described by the production function Y depreciation rate of capital is 6 n 0.05 and the technology growth rate is g = 0.1 K (LE). Moreover the 0.15, the population growth rate is (a) What is the per effective worker production function, that is y ? What is the marginal product of capital, that is ? (b) If the saving rate is s 0.3, find...
In the Solow growth model without population growth, if an economy has a steady-state value of the marginal product of capital (MPK) of 0.125, a depreciation rate of 0.1, and a saving rate of 0.225, then the steady-state capital stock per worker: Select one: a. is less than the Golden Rule level. O b. is greater than the Golden Rule level. c. could be either above or below the Golden Rule level. d. equals the Golden Rule level.
1. Assume that an economy described by a Solow model has a per-worker production function given by y- k05, where y is output per worker and k is capital stock per worker (capital-labor ratio). Assume also that the depreciation rate δ is 5%. This economy has no technological progress and no population growth (n 0). Both capital and labor are paid for their marginal products and the economy has been in a steady state with capital stock per worker at...
3) Consider a closed economy in which the population grows at the rate of 1% per year. The per-worker production function is y = 6k 12, where y is output per worker and k is capital per worker. The depreciation rate of capital is 14% per year. a. Households consume 90% of income and save the remaining 10% of income. There is no government. What are the steady-state values of capital per worker, output per worker, consumption per worker, and...
(24) Consider a closed economy in which the population grows at the rate of 2% per year. The depreciation rate of capital is 10% per year. The saving rate is 10% The per-worker production function is Yt = 4.8k0.5, where y is output per worker and k is capital per worker. The steady state growth rate of output per worker is equal to (A) 0% (B) 2% (C) 8% (D) 10% (25) Consider a closed economy in which the population...
Consider a closed economy in which the population grows at the rate of 2% per year. The per-worker production function is given as where is output per worker and kis capital per worker. The depreciation rate of capital is 18.00% per year Suppose that households consume 75% of income and save the remaining 25%. There is no government (Enter all response is integers or decimals rounded to one place as appropriate. What is the steady-state value of capital per worker?k=
Consider the following production function for an economy: 1. Y=2K1/4L3/4 (a) Suppose the capital stock is K = 16 and its labour force is L = 1. Find: (i) GDP; (ii) the marginal product of capital; (iii) the real rental price of capital; (iv) labour's share of income. (b) Suppose further that aggregate consumption (C) is 80 per cent of disposable income, government spending is G = 1, the budget is balanced, and private sector investment is I = 6...
all but part a
2. (Population growth and technology growth) Consider an economy that is described by the production function Y depreciation rate of capital is 6 n 0.05 and the technology growth rate is g = 0.1 K (LE). Moreover the 0.15, the population growth rate is (a) What is the per effective worker production function, that is y ? What is the marginal product of capital, that is ? (b) If the saving rate is s 0.3, find...
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