Homework Answers
This is an application of the famous Harrod Domar model of growth.
Growth rate(G) = savings rate * marginal product of capital - depreciation rate * capital
Let K= 1, 2, 3,...101.
K(t+1) corresponds to year t
Y=(K^0.5)*(N^0.5)
| Years | K | N | K/N | Y=(K^0.5)*(N^0.5) | Y/N | G=s*MPK-depreciation rate*K |
| 0 | 1 | 1 | 1 | 1 | 1 | 0 |
| 1 | 2 | 2 | 1 | 2 | 1 | -0.1 |
| 2 | 3 | 3 | 1 | 3 | 1 | -0.2 |
| 3 | 4 | 4 | 1 | 4 | 1 | -0.3 |
| 4 | 5 | 5 | 1 | 5 | 1 | -0.4 |
| 5 | 6 | 6 | 1 | 6 | 1 | -0.5 |
| 6 | 7 | 7 | 1 | 7 | 1 | -0.6 |
| 7 | 8 | 8 | 1 | 8 | 1 | -0.7 |
| 8 | 9 | 9 | 1 | 9 | 1 | -0.8 |
| 9 | 10 | 10 | 1 | 10 | 1 | -0.9 |
| 10 | 11 | 11 | 1 | 11 | 1 | -1 |
| 11 | 12 | 12 | 1 | 12 | 1 | -1.1 |
| 12 | 13 | 13 | 1 | 13 | 1 | -1.2 |
| 13 | 14 | 14 | 1 | 14 | 1 | -1.3 |
| 14 | 15 | 15 | 1 | 15 | 1 | -1.4 |
| 15 | 16 | 16 | 1 | 16 | 1 | -1.5 |
| 16 | 17 | 17 | 1 | 17 | 1 | -1.6 |
| 17 | 18 | 18 | 1 | 18 | 1 | -1.7 |
| 18 | 19 | 19 | 1 | 19 | 1 | -1.8 |
| 19 | 20 | 20 | 1 | 20 | 1 | -1.9 |
| 20 | 21 | 21 | 1 | 21 | 1 | -2 |
| 21 | 22 | 22 | 1 | 22 | 1 | -2.1 |
| 22 | 23 | 23 | 1 | 23 | 1 | -2.2 |
| 23 | 24 | 24 | 1 | 24 | 1 | -2.3 |
| 24 | 25 | 25 | 1 | 25 | 1 | -2.4 |
| 25 | 26 | 26 | 1 | 26 | 1 | -2.5 |
| 26 | 27 | 27 | 1 | 27 | 1 | -2.6 |
| 27 | 28 | 28 | 1 | 28 | 1 | -2.7 |
| 28 | 29 | 29 | 1 | 29 | 1 | -2.8 |
| 29 | 30 | 30 | 1 | 30 | 1 | -2.9 |
| 30 | 31 | 31 | 1 | 31 | 1 | -3 |
| 31 | 32 | 32 | 1 | 32 | 1 | -3.1 |
| 32 | 33 | 33 | 1 | 33 | 1 | -3.2 |
| 33 | 34 | 34 | 1 | 34 | 1 | -3.3 |
| 34 | 35 | 35 | 1 | 35 | 1 | -3.4 |
| 35 | 36 | 36 | 1 | 36 | 1 | -3.5 |
| 36 | 37 | 37 | 1 | 37 | 1 | -3.6 |
| 37 | 38 | 38 | 1 | 38 | 1 | -3.7 |
| 38 | 39 | 39 | 1 | 39 | 1 | -3.8 |
| 39 | 40 | 40 | 1 | 40 | 1 | -3.9 |
| 40 | 41 | 41 | 1 | 41 | 1 | -4 |
| 41 | 42 | 42 | 1 | 42 | 1 | -4.1 |
| 42 | 43 | 43 | 1 | 43 | 1 | -4.2 |
| 43 | 44 | 44 | 1 | 44 | 1 | -4.3 |
| 44 | 45 | 45 | 1 | 45 | 1 | -4.4 |
| 45 | 46 | 46 | 1 | 46 | 1 | -4.5 |
| 46 | 47 | 47 | 1 | 47 | 1 | -4.6 |
| 47 | 48 | 48 | 1 | 48 | 1 | -4.7 |
| 48 | 49 | 49 | 1 | 49 | 1 | -4.8 |
| 49 | 50 | 50 | 1 | 50 | 1 | -4.9 |
| 50 | 51 | 51 | 1 | 51 | 1 | -5 |
| 51 | 52 | 52 | 1 | 52 | 1 | -5.1 |
| 52 | 53 | 53 | 1 | 53 | 1 | -5.2 |
| 53 | 54 | 54 | 1 | 54 | 1 | -5.3 |
| 54 | 55 | 55 | 1 | 55 | 1 | -5.4 |
| 55 | 56 | 56 | 1 | 56 | 1 | -5.5 |
| 56 | 57 | 57 | 1 | 57 | 1 | -5.6 |
| 57 | 58 | 58 | 1 | 58 | 1 | -5.7 |
| 58 | 59 | 59 | 1 | 59 | 1 | -5.8 |
| 59 | 60 | 60 | 1 | 60 | 1 | -5.9 |
| 60 | 61 | 61 | 1 | 61 | 1 | -6 |
| 61 | 62 | 62 | 1 | 62 | 1 | -6.1 |
| 62 | 63 | 63 | 1 | 63 | 1 | -6.2 |
| 63 | 64 | 64 | 1 | 64 | 1 | -6.3 |
| 64 | 65 | 65 | 1 | 65 | 1 | -6.4 |
| 65 | 66 | 66 | 1 | 66 | 1 | -6.5 |
| 66 | 67 | 67 | 1 | 67 | 1 | -6.6 |
| 67 | 68 | 68 | 1 | 68 | 1 | -6.7 |
| 68 | 69 | 69 | 1 | 69 | 1 | -6.8 |
| 69 | 70 | 70 | 1 | 70 | 1 | -6.9 |
| 70 | 71 | 71 | 1 | 71 | 1 | -7 |
| 71 | 72 | 72 | 1 | 72 | 1 | -7.1 |
| 72 | 73 | 73 | 1 | 73 | 1 | -7.2 |
| 73 | 74 | 74 | 1 | 74 | 1 | -7.3 |
| 74 | 75 | 75 | 1 | 75 | 1 | -7.4 |
| 75 | 76 | 76 | 1 | 76 | 1 | -7.5 |
| 76 | 77 | 77 | 1 | 77 | 1 | -7.6 |
| 77 | 78 | 78 | 1 | 78 | 1 | -7.7 |
| 78 | 79 | 79 | 1 | 79 | 1 | -7.8 |
| 79 | 80 | 80 | 1 | 80 | 1 | -7.9 |
| 80 | 81 | 81 | 1 | 81 | 1 | -8 |
| 81 | 82 | 82 | 1 | 82 | 1 | -8.1 |
| 82 | 83 | 83 | 1 | 83 | 1 | -8.2 |
| 83 | 84 | 84 | 1 | 84 | 1 | -8.3 |
| 84 | 85 | 85 | 1 | 85 | 1 | -8.4 |
| 85 | 86 | 86 | 1 | 86 | 1 | -8.5 |
| 86 | 87 | 87 | 1 | 87 | 1 | -8.6 |
| 87 | 88 | 88 | 1 | 88 | 1 | -8.7 |
| 88 | 89 | 89 | 1 | 89 | 1 | -8.8 |
| 89 | 90 | 90 | 1 | 90 | 1 | -8.9 |
| 90 | 91 | 91 | 1 | 91 | 1 | -9 |
| 91 | 92 | 92 | 1 | 92 | 1 | -9.1 |
| 92 | 93 | 93 | 1 | 93 | 1 | -9.2 |
| 93 | 94 | 94 | 1 | 94 | 1 | -9.3 |
| 94 | 95 | 95 | 1 | 95 | 1 | -9.4 |
| 95 | 96 | 96 | 1 | 96 | 1 | -9.5 |
| 96 | 97 | 97 | 1 | 97 | 1 | -9.6 |
| 97 | 98 | 98 | 1 | 98 | 1 | -9.7 |
| 98 | 99 | 99 | 1 | 99 | 1 | -9.8 |
| 99 | 100 | 100 | 1 | 100 | 1 | -9.9 |
| 100 | 101 | 101 | 1 | 101 | 1 | -10 |
Add Answer to:
Suppose that the production function of a country is given by: Y = 1/2" where K...
2. that the production function is given by: Suppose where Yis output, K is capital and...
2. that the production function is given by: Suppose where Yis output, K is capital and N is the number of workers. The steady-state level of capital per worker, in terms of the saving rate, s., and the depreciation rate, ,s KIN(Enter your response as an expression.) YIN=□ (Enter your response as an expression.) CIN=□ (Enter your response as an expression ) The steady-state level of output per worker, in terms of the saving rate, s, and the depreciation rate,...
pls solve parts d, e, f Suppose Country X's production function is given by F(K, AN)...
pls solve parts d, e, f
Suppose Country X's production function is given by F(K, AN) = 206,05(A, N.)05 where K, is the capital and A, N, is the effective worker. The evolution of the capital stock is given by K+1 = 0.74K, +1, where the depreciation rate is 26%. Additionally, the saving rate is 36%, the population growth rate is 4% and the technological growth rate is 10%. (a) Derive and show that in the Solow growth model, the...
pls solve parts g,h,i, j Suppose Country X's production function is given by F(K, A,N) =...
pls solve parts g,h,i, j
Suppose Country X's production function is given by F(K, A,N) = 206,05(A, N,905 where K, is the capital and A, N, is the effective worker. The evolution of the capital stock is given by K +1 = 0.74K, +1 where the depreciation rate is 26%. Additionally, the saving rate is 36%, the population growth rate is 4% and the technological growth rate is 10% (a) Derive and show that in the Solow growth model, the...
Suppose the growth of production in country B follows solow Model.country B's production function is Y=F(k,L)=K^0.5...
Suppose the growth of production in country B follows solow Model.country B's production function is Y=F(k,L)=K^0.5 L^0.5. Country B has 100 prople(labors) and 64 units of capital K in year 1.The population growth rate n=0.21 and the saving rate s=0.1.There is no depreciation in capital K. For country B,what is the production per capita in Year 2?
Problem 4 Consider a country with production function , where y = 5k1/2, where y is...
Problem 4
Consider a country with production function , where y =
5k1/2, where y is the output per worker and k is capital
per worker. Suppose the investment in capital occurs at a rate of
35% of income per worker every period, depreciation rate is 1.5%
and population growth rate is 2%. Use excel to plot the production
function, investment line and capital depletion line with k on the
x-axis(use the attached spread sheet to draw your graphs).
-attached...
Suppose the production function is given by ? = ?^a?'^1-a, where Y is output; K is...
Suppose the production function is given by ? = ?^a?'^1-a, where Y is output; K is capital stock and N is Labor (look Appendix in Chapter 16). a. Is this production function characterized by constant return to scale? How? Show the work. b. Write this production function as a relationship between output per worker and capital per worker. c. If saving (S) equals investment (I), and S = sY, where s is saving rate, what is the corresponding investment per...
Consider the Solow growth model with the following production function where y is output. K is ca...
A and B only
Consider the Solow growth model with the following production function where y is output. K is capital, s is the productivity and is labor. Assume that 0 < α < 1 Further, suppose that labor grows at a constant rate n. That is. 1 + n. Also, assume that capital depreciates at rate d and that gross investment in capital is fraction s of output. a Letting k-N, obtain the law of motion for capital accumulation...
Suppose the production function is given by yt=kt1/2 where y is the output per worker and k...
Suppose the production function is given by yt=kt1/2 where y is the output per worker and k is the capital per worker. Assume that the saving rate (S) is exogenous and the capital depreciates at δ rate. If the sum of both the depreciation rate and saving rate equals 1. Furthermore, assume that S=3δ. The steady state output is
2. The production function of an economy is y = 2-kas, where y is output per...
2. The production function of an economy is y = 2-kas, where y is output per labor and k is capital per labor. The growth rate of the labor force is 2% and the rate of capital depreciation is 5%. There is no Calculate the steady state capital-labor ratio (k*) if the saving rate is 10%! (3 points) What is the saving rate corresponding to the 'golden rule' growth path? (3 points) technological change a) b) c) Calculate the growth...
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...
2. that the production function is given by: Suppose where Yis output, K is capital and N is the number of workers. The steady-state level of capital per worker, in terms of the saving rate, s., and the depreciation rate, ,s KIN(Enter your response as an expression.) YIN=□ (Enter your response as an expression.) CIN=□ (Enter your response as an expression ) The steady-state level of output per worker, in terms of the saving rate, s, and the depreciation rate,...
pls solve parts d, e, f
Suppose Country X's production function is given by F(K, AN) = 206,05(A, N.)05 where K, is the capital and A, N, is the effective worker. The evolution of the capital stock is given by K+1 = 0.74K, +1, where the depreciation rate is 26%. Additionally, the saving rate is 36%, the population growth rate is 4% and the technological growth rate is 10%. (a) Derive and show that in the Solow growth model, the...
pls solve parts g,h,i, j
Suppose Country X's production function is given by F(K, A,N) = 206,05(A, N,905 where K, is the capital and A, N, is the effective worker. The evolution of the capital stock is given by K +1 = 0.74K, +1 where the depreciation rate is 26%. Additionally, the saving rate is 36%, the population growth rate is 4% and the technological growth rate is 10% (a) Derive and show that in the Solow growth model, the...
Problem 4
Consider a country with production function , where y =
5k1/2, where y is the output per worker and k is capital
per worker. Suppose the investment in capital occurs at a rate of
35% of income per worker every period, depreciation rate is 1.5%
and population growth rate is 2%. Use excel to plot the production
function, investment line and capital depletion line with k on the
x-axis(use the attached spread sheet to draw your graphs).
-attached...
A and B only
Consider the Solow growth model with the following production function where y is output. K is capital, s is the productivity and is labor. Assume that 0 < α < 1 Further, suppose that labor grows at a constant rate n. That is. 1 + n. Also, assume that capital depreciates at rate d and that gross investment in capital is fraction s of output. a Letting k-N, obtain the law of motion for capital accumulation...
2. The production function of an economy is y = 2-kas, where y is output per labor and k is capital per labor. The growth rate of the labor force is 2% and the rate of capital depreciation is 5%. There is no Calculate the steady state capital-labor ratio (k*) if the saving rate is 10%! (3 points) What is the saving rate corresponding to the 'golden rule' growth path? (3 points) technological change a) b) c) Calculate the growth...
Most questions answered within 3 hours.
-
why
is vectorization a faster alternative to loops?
asked 52 minutes ago -
General Matter’s outstanding bond issue has a coupon rate of
11.8%, and it sells at a...
asked 1 hour ago -
Write a one page essay on how important is it to know your basic
accounting knowledge...
asked 59 minutes ago -
You are a Senior Civil Engineer posted at the Contracts and
Procurement Division of the Ministry...
asked 1 hour ago -
When using the percentage of completion method, the
company
- recognizes revenues and gross profit each...
asked 1 hour ago -
Is a level production strategy suitable for a pure service
industry, such as professional accounting and...
asked 1 hour ago -
Baker Industries’ net income is $23000, its interest expense is
$4000, and its tax rate is...
asked 1 hour ago -
a) A proton moves at 500 m/s in a 2 T magnetic field. What is
the...
asked 1 hour ago -
Anderson Systems is considering a project that has the following
cash flow and WACC data. What...
asked 2 hours ago -
MARIE Assembly Code Problem
For the following problem, please create new MARIE instructions
by providing the...
asked 1 hour ago -
Which ligands are similar to each other in how they bind to
metals?
A) methyl, amine,...
asked 1 hour ago -
The allowance account before adjustment has a credit balance of
$1,950. Bad debt expense for the...
asked 2 hours ago