Homework Answers
Add Answer to:
The aggregate wage bill in an economy is equal to 60 and output, which is produced...
The aggregate wage bill in an economy is equal to 60 and output, which is produced...
The aggregate wage bill in an economy is equal to 60 and output, which is produced according to the Cobb-Douglas production function, is equal to 100. The output growth rate was 10 percent and the growth rates of capital and labor were 10 percent and 5 percent respectively. A) What was the overall productivity (TFP) growth rate for this economy? B) Repeat (a) if the wage bill is 80 instead of 60. C) Derive the expression for TFP growth in...
1. Suppose that the aggregate production function has the Cobb-Douglas form The parameter A is called...
1. Suppose that the aggregate production function has the Cobb-Douglas form The parameter A is called total factor productivity and the parameter α is a constant between zero and one. (1) Derive the formula for growth accounting. (2)According to the Japanese data between 1960 and 1990, Y/Y -0.0681 αΚΚ:0.0387 ,(1-α)L/L:00097 Compute the growth rate of total factor productivity.
According to the neoclassical theory of distribution, in an economy described by a Cobb Douglas production...
According to the neoclassical theory of distribution, in an economy described by a Cobb Douglas production function, workers should experience high rates of real wage growth when a. marginal labor productivity is growing rapidly b. the capital stock is growing slowly c. the labor force is growing rapidly. d. labor productivity is growing slowly
15. Consider an economy, with a production function given by Y-AK03L07. This economy's annual GDP growth...
15. Consider an economy, with a production function given by Y-AK03L07. This economy's annual GDP growth rate is 5%. Also assume that L and Kare both growing at annual rates of 2%. Calculate the growth rate of total factor productivity for this economy. a. 2.0% b. 3.0% 4.0% c. d. 5.0% 16. Suppose output is determined by a Cobb-Douglas production function Y=AK L1 Where 0ca<1. If total factor productivity (A) remains constant, but labour (L) and capital (K) inputs both...
1. (The AK Model) Consider an economy with an aggregate production function given by y =...
1. (The AK Model) Consider an economy with an aggregate production function given by y = F(K) = AK Capital is the only relevant factor of production. A is fixed and represents the productivity of capital. The law of motion for capital is just as in the neoclassical model where s and δ are the savings rate and depreciation rate, respectively. a) Show whether F(K) exhibits constant, decreasing or increasing returns to scale. Com- pute the marginal product of capital....
1. Consider the following production functions. In each case determine if: • the function is Cobb...
1. Consider the following production functions. In each case determine if: • the function is Cobb Douglas (Y = AK 11-a). If the function is Cobb Douglas, what is the value of the parameter a? • Do capital and labor exhibit diminishing returns. Explain your thinking using algebra / calculus /a graph etc. (a) F(K, L) = 27K+15VL (b) F(KL) = 5K + 3L (c) F(KL) = K0.5 0.5 (a) F(KL) - VK2 + L2 2. Suppose that the production...
Question 3: Productivity, Output, and Employment (20 marks) Assume that the aggregate production is given by...
Question 3: Productivity, Output, and Employment (20 marks) Assume that the aggregate production is given by the following: Y stands for output, K stands for the capital stock, N stands for the number of the people employed, L stands for the quantity of land used in production, and A stands for a measure of labour efficiency. α and β are parameters whose values are between 0 and 1. a) Derive an analytical expression for the marginal product of capital (MPK),...
Question 3: Productivity, Output, and Employment (20 marks) Assume that the aggregate production is given by...
Question 3: Productivity, Output, and Employment (20 marks) Assume that the aggregate production is given by the following: Y stands for output, K stands for the capital stock, N stands for the number of the people employed, L stands for the quantity of land used in production, and A stands for a measure of labour efficiency. a and B are parameters whose values are between O and I a) Derive an analytical expression for the marginal product of capital (MPK),...
An economy has a Cobb-Douglas production function: Y = K"(LE)!-a The economy has a capital share...
An economy has a Cobb-Douglas production function: Y = K"(LE)!-a The economy has a capital share of 0.25, a saving rate of 40 percent, a depreciation rate of 3.00 percent, a rate of population growth of 0.75 percent, and a rate of labor- augmenting technological change of 2.0 percent. It is in steady state. b. Solve for capital per effective worker (k*), output per effective worker (y*), and the marginal product of capital.
Economic Growth II - Work It Out Question 1 An economy has a Cobb Douglas production...
Economic Growth II - Work It Out Question 1 An economy has a Cobb Douglas production function: Y = K (LE). The economy has a capital share of 0.20, a saving rate of 50 percent, a depreciation rate of 3.50 percent, a rate of population growth of 4.00 percent, and a rate of labor augmenting technological change of 2.5 percent. It is in steady state. a. At what rates do total output and output per worker grow? Total output growth...
The aggregate wage bill in an economy is equal to 60 and output, which is produced according to the Cobb-Douglas production function, is equal to 100. The output growth rate was 10 percent and the growth rates of capital and labor were 10 percent and 5 percent respectively. A) What was the overall productivity (TFP) growth rate for this economy? B) Repeat (a) if the wage bill is 80 instead of 60. C) Derive the expression for TFP growth in...
1. Suppose that the aggregate production function has the Cobb-Douglas form The parameter A is called total factor productivity and the parameter α is a constant between zero and one. (1) Derive the formula for growth accounting. (2)According to the Japanese data between 1960 and 1990, Y/Y -0.0681 αΚΚ:0.0387 ,(1-α)L/L:00097 Compute the growth rate of total factor productivity.
15. Consider an economy, with a production function given by Y-AK03L07. This economy's annual GDP growth rate is 5%. Also assume that L and Kare both growing at annual rates of 2%. Calculate the growth rate of total factor productivity for this economy. a. 2.0% b. 3.0% 4.0% c. d. 5.0% 16. Suppose output is determined by a Cobb-Douglas production function Y=AK L1 Where 0ca<1. If total factor productivity (A) remains constant, but labour (L) and capital (K) inputs both...
1. (The AK Model) Consider an economy with an aggregate production function given by y = F(K) = AK Capital is the only relevant factor of production. A is fixed and represents the productivity of capital. The law of motion for capital is just as in the neoclassical model where s and δ are the savings rate and depreciation rate, respectively. a) Show whether F(K) exhibits constant, decreasing or increasing returns to scale. Com- pute the marginal product of capital....
1. Consider the following production functions. In each case determine if: • the function is Cobb Douglas (Y = AK 11-a). If the function is Cobb Douglas, what is the value of the parameter a? • Do capital and labor exhibit diminishing returns. Explain your thinking using algebra / calculus /a graph etc. (a) F(K, L) = 27K+15VL (b) F(KL) = 5K + 3L (c) F(KL) = K0.5 0.5 (a) F(KL) - VK2 + L2 2. Suppose that the production...
Question 3: Productivity, Output, and Employment (20 marks) Assume that the aggregate production is given by the following: Y stands for output, K stands for the capital stock, N stands for the number of the people employed, L stands for the quantity of land used in production, and A stands for a measure of labour efficiency. α and β are parameters whose values are between 0 and 1. a) Derive an analytical expression for the marginal product of capital (MPK),...
Question 3: Productivity, Output, and Employment (20 marks) Assume that the aggregate production is given by the following: Y stands for output, K stands for the capital stock, N stands for the number of the people employed, L stands for the quantity of land used in production, and A stands for a measure of labour efficiency. a and B are parameters whose values are between O and I a) Derive an analytical expression for the marginal product of capital (MPK),...
An economy has a Cobb-Douglas production function: Y = K"(LE)!-a The economy has a capital share of 0.25, a saving rate of 40 percent, a depreciation rate of 3.00 percent, a rate of population growth of 0.75 percent, and a rate of labor- augmenting technological change of 2.0 percent. It is in steady state. b. Solve for capital per effective worker (k*), output per effective worker (y*), and the marginal product of capital.
Economic Growth II - Work It Out Question 1 An economy has a Cobb Douglas production function: Y = K (LE). The economy has a capital share of 0.20, a saving rate of 50 percent, a depreciation rate of 3.50 percent, a rate of population growth of 4.00 percent, and a rate of labor augmenting technological change of 2.5 percent. It is in steady state. a. At what rates do total output and output per worker grow? Total output growth...
Most questions answered within 3 hours.
-
A χ2-curve, looking at the relationship between age and hours
spent working at an office per...
asked 14 minutes ago -
The pH of a sample of water from a river is 5.0. A
sample of effluent from...
asked 59 minutes ago -
At the beginning of the period, the Fabricating Department
budgeted direct labor of $136,500 and equipment...
asked 1 hour ago -
Please answer all
____ 28. Rent control is usually
justified on the grounds that it protects...
asked 1 hour ago -
PARTS A-D HAVE BEEN ANSWERED. WAS TOLD TO REPOST. ONLY ANSWER
PARTS E and F.
A...
asked 1 hour ago -
2) You are given the task of finding a representation for a
circle in a drawing...
asked 2 hours ago -
STUDY QUESTION: Does use of diet drug fen-phen
(fenfluramine-phentermine) cause valvular heart disease?
HINT: Valvular heart...
asked 2 hours ago -
1. An object weighing 40 N rests on a surface. The coefficient
of friction is 0.35....
asked 4 hours ago -
Investor company owns 35% of investee company voting stock and
accounts for the investment under the...
asked 5 hours ago -
The number of major faults on a randomly chosen 1 km stretch of
highway has a...
asked 5 hours ago -
Consider the competitive environment of Starbuck's, Progressive
Insurance, a manufacturing firm with low turnover, or a...
asked 6 hours ago -
3. Gains from trade
Consider two neighbouring island countries called Euphoria and
Contente. They each have...
asked 8 hours ago