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explain why this has not happenear 9. A variation on the Romer model: Consider the following...
7. Numbers in the Romer model (Il): Now suppose the parameters of the model take the...
7. Numbers in the Romer model (Il): Now suppose the parameters of the model take the following values: A 100. 0.06, 1/3,000, and Z 1,000. (a) What is the growth rate of output per person in this economy? (b) What is the initial level of output per person? What is the level of output per person after 100 years? (c) Now consider the following changes one at a time: a doubling of the initial stock of knowledge Ao, a doubling...
The Romer model consists of the following equations: Output production function: Y4 = A Lyt Idea...
The Romer model consists of the following equations: Output production function: Y4 = A Lyt Idea production function: AA +1 = 2A Lat Resource constraint: Ly + Lat = L Allocation of labor: Lat = IL Suppose the parameters of the Romer model take the following values: Ao = 100, 1 = 0.06, 3 = 1/3000, L = 1000 18. What is the growth rate of output per person in this economy? a) 1% b) 2% c) 4% d) 10%...
Consider adding capital back in the Romer model, where the saving rate is constant and population...
Consider adding capital back in the Romer model, where the saving rate is constant and population is constant. The combined model becomes: Y1 = AK?/31323 AK4+1 = $Yt - dkt AAt+1 = ZA+Lat Í = Lyt + Lat Lyt = (1 - 1) • Calculate the growth rate of technology. • Calculate the long run growth rate of the output. • Calculate the capital-output ratio. Calculate the output per person.(hint: use the production function and capital output ratio)
Hello! Can I get help with these two questions? Thanks! :) 9. Consider an economy with the following aggregate produ...
Hello! Can I get help with these two questions?
Thanks! :)
9. Consider an economy with the following aggregate production function F(KL) = AKL, where A = Ag and g is per-capita government purchases. An increase in 9 __ the of per capita GDP. A. Raises: Steady-state level B. Raises; Growth rate C. Decreases: Steady-state level D. Does not affect; The level or growth rate and ideas are 10. According to the Romer model, objects are A. Nonrivalrous; Nonrivalrous B....
Consider the two-sector edogenous growth model Y = F[K, (1− u)LE] = K0.3[(1 − u)LE]0.7 Output...
Consider the two-sector edogenous growth model Y = F[K, (1− u)LE] = K0.3[(1 − u)LE]0.7 Output per effective worker is y = f(k, 1 − u) = k0.3(1 − u)0.7 (3 points) In this economy, with a depreciation rate of 13%, a population growth rate of 2%, and technological growth rate of g(u), what is the break-even investment (the amount of investment needed to keep capital per effective worker constant)? (7 points) Write down the equation of motion for k...
Please explain an show steps Problem 5: Consider the following variation of the aggregate production function....
Please explain an show
steps
Problem 5: Consider the following variation of the aggregate production function. Now firms must use oil M to produce output (in addition to labor and capital). The price of a unit of oil is p max II, = AK“LPM? – w L - rK – PM (a) Find a first-order condition for the firm's demand for oil. (b) What must be true about the parameters a, b, and y if this production function exhibits constant...
. Consider the following one-sector, closed, representative household economy. The production technology is given by the...
. Consider the following one-sector, closed, representative household economy. The production technology is given by the Cobb-Douglas production function where Y(t) is the output, K(t) is the capital stock, Lit) is the labor input, all at time t, 0 < a < and A(t) is the technology level at time t. Technological progress is at positive rate g. Let δ denote the depreciation rate for capital. This production function displays constant returns to scale in both K and L, hence...
. Consider the following one-sector, closed, representative household economy. The production technology is given by the...
. Consider the following one-sector, closed, representative household economy. The production technology is given by the Cobb-Douglas production function where Y(t) is the output, K(t) is the capital stock, Lit) is the labor input, all at time t, 0 < a < and A(t) is the technology level at time t. Technological progress is at positive rate g. Let δ denote the depreciation rate for capital. This production function displays constant returns to scale in both K and L, hence...
Consider the Solow growth model. Output at time t is given by the production function Yt...
Consider the Solow growth model. Output at time t is given by the production function Yt = AK 1 3 t L 2 3 where Kt is total capital at time t, L is the labour force and A is total factor productivity. The labour force and total factor productivity are constant over time and capital evolves according the transition equation Kt+1 = (1 − d) ∗ Kt + It , where d is the depreciation rate. Every person saves...
Consider the Solow growth model. Output at time t is given by the production function Y-AK3...
Consider the Solow growth model. Output at time t is given by the production function Y-AK3 Lš where K, is total capital at time t, L is the labour force and A is total factor productivity. The labour force and total factor productivity are constant over time and capital evolves according the transition equation KH = (1-d) * Kit It: where d is the depreciation rate. Every person saves share s of his income and, therefore, aggregate saving is St-s...
7. Numbers in the Romer model (Il): Now suppose the parameters of the model take the following values: A 100. 0.06, 1/3,000, and Z 1,000. (a) What is the growth rate of output per person in this economy? (b) What is the initial level of output per person? What is the level of output per person after 100 years? (c) Now consider the following changes one at a time: a doubling of the initial stock of knowledge Ao, a doubling...
The Romer model consists of the following equations: Output production function: Y4 = A Lyt Idea production function: AA +1 = 2A Lat Resource constraint: Ly + Lat = L Allocation of labor: Lat = IL Suppose the parameters of the Romer model take the following values: Ao = 100, 1 = 0.06, 3 = 1/3000, L = 1000 18. What is the growth rate of output per person in this economy? a) 1% b) 2% c) 4% d) 10%...
Consider adding capital back in the Romer model, where the saving rate is constant and population is constant. The combined model becomes: Y1 = AK?/31323 AK4+1 = $Yt - dkt AAt+1 = ZA+Lat Í = Lyt + Lat Lyt = (1 - 1) • Calculate the growth rate of technology. • Calculate the long run growth rate of the output. • Calculate the capital-output ratio. Calculate the output per person.(hint: use the production function and capital output ratio)
Hello! Can I get help with these two questions?
Thanks! :)
9. Consider an economy with the following aggregate production function F(KL) = AKL, where A = Ag and g is per-capita government purchases. An increase in 9 __ the of per capita GDP. A. Raises: Steady-state level B. Raises; Growth rate C. Decreases: Steady-state level D. Does not affect; The level or growth rate and ideas are 10. According to the Romer model, objects are A. Nonrivalrous; Nonrivalrous B....
Please explain an show
steps
Problem 5: Consider the following variation of the aggregate production function. Now firms must use oil M to produce output (in addition to labor and capital). The price of a unit of oil is p max II, = AK“LPM? – w L - rK – PM (a) Find a first-order condition for the firm's demand for oil. (b) What must be true about the parameters a, b, and y if this production function exhibits constant...
. Consider the following one-sector, closed, representative household economy. The production technology is given by the Cobb-Douglas production function where Y(t) is the output, K(t) is the capital stock, Lit) is the labor input, all at time t, 0 < a < and A(t) is the technology level at time t. Technological progress is at positive rate g. Let δ denote the depreciation rate for capital. This production function displays constant returns to scale in both K and L, hence...
. Consider the following one-sector, closed, representative household economy. The production technology is given by the Cobb-Douglas production function where Y(t) is the output, K(t) is the capital stock, Lit) is the labor input, all at time t, 0 < a < and A(t) is the technology level at time t. Technological progress is at positive rate g. Let δ denote the depreciation rate for capital. This production function displays constant returns to scale in both K and L, hence...
Consider the Solow growth model. Output at time t is given by the production function Y-AK3 Lš where K, is total capital at time t, L is the labour force and A is total factor productivity. The labour force and total factor productivity are constant over time and capital evolves according the transition equation KH = (1-d) * Kit It: where d is the depreciation rate. Every person saves share s of his income and, therefore, aggregate saving is St-s...
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