Homework Answers
Add Answer to:
1. Assume that an economy described by a Solow model has a per-worker production function given...
3)- Consider an economy with the production function: Y=4K0.6 No.4, in the framework of the Solow...
3)- Consider an economy with the production function: Y=4K0.6 No.4, in the framework of the Solow Model, with usual definitions. Suppose, the labor force is growing at 1% a year, depreciation rate is 4%, and saving rate is 20%. (Total 17 points) a)- Find the steady state equilibrium of per worker levels of capital, output, and consumption. (4) b)- Find the golden rule saving rate, and golden rule per worker levels of output, capital, and consumption. (4) c)- How much...
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...
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.
A hypothetical economy can be described by the Solow growth model. Answer the below questions for...
A hypothetical economy can be described by the Solow growth model. Answer the below questions for this economy by using the following information: ? = √? saving rate (s) = 0.20 depreciation rate (&) = 0.12 initial capital per worker (k) = 4 population growth rate (n) = 0.02 a. What is the steady-state level of capital per worker? b. What is the steady-state level of output per worker? c. What is the level of steady-state consumption per worker? d....
1.The Golden Rule in a Solow Model without a Cobb-Douglas Production Function Suppose that the per-worker...
1.The Golden Rule in a Solow Model without a Cobb-Douglas Production Function Suppose that the per-worker production function is: 4k tk +3 where yt = Yt/L and kt = Kt/L A.Does this production function exhibit diminishing marginal product of capital? Illustrate and explain. Note that you can use calculus, but you can also create a table. Note that AKt+1- Akt+1 and: B.Suppose that the savings rate in this economy is 36 percent (s- 0.36) and the depreciation rate is 6...
1. Solow growth model: a. Draw the steady-state equilibrium by drawing the savings line and the...
1. Solow growth model: a. Draw the steady-state equilibrium by drawing the savings line and the investment line. Show the steady-state values of savings, investment and capital per worker. b. On the same graph, also draw the output per worker (or per-worker production function) line. At the steady-state, mark the level of consumption per worker and savings per worker. c. What is the growth rate of yt, Ct, kt (per-worker variables, represented with an "upperbar" in class) in the steady-state?...
An economy has the per-worker production Y = 3k^.5 Where y is output per worker and...
An economy has the per-worker production Y = 3k^.5 Where y is output per worker and k is the capital to labor ratio. The depreciation rate is 0.1, and the population growth rate is 0.05 Total saving is S=0.3Y S is total saving and Y is total output a. What are the steady state values of the capital to labor ratio, output per worker, and consumption? b. Repeat part (a) for saving rate of 0.4. c. Repeat part (a) for...
Solow growth model: 1. a. Draw the steady-state equilibrium by drawing the savings line and the...
Solow growth model: 1. a. Draw the steady-state equilibrium by drawing the savings line and the investment line. Show the steady-state values of savings, investment and capital per worker. b. On the same graph, also draw the output per worker (or per-worker production function) line. At the steady-state, mark the level of consumption per worker and savings per worker. c. What is the growth rate of yYt, Ct, kt (per-worker variables, represented with an "upperbar" in class) in the steady-state?...
2. Suppose an economy described by the Solow model has the following production function and capital...
2. Suppose an economy described by the Solow model has the following production function and capital law of motion, with the variables as defined in class: Y =K^(1/2)(LE)^(1/2) ∆k = sy − (δ + n + g)k The economy has a saving rate of 24 percent, a depreciation rate of 3 percent, a population growth rate of 2 percent, and a growth rate of labor productivity of 1 percent. (a) At what rate do total output (Y ), output per...
9) According to the Solow model, an increase in the capital-labor ratio will A) always reduce...
9) According to the Solow model, an increase in the capital-labor ratio will A) always reduce steady state consumption per worker. B) always increase steady state consumption per worker. C) reduce steady state consumption per worker if the capital-labor ratio is below the Golden rule capital stock. D) increase steady state consumption per worker if the capital-labor ratio is below the Golden rule capital stock. in the 10) According to the Solow model, in the long run, an increase in...
3)- Consider an economy with the production function: Y=4K0.6 No.4, in the framework of the Solow Model, with usual definitions. Suppose, the labor force is growing at 1% a year, depreciation rate is 4%, and saving rate is 20%. (Total 17 points) a)- Find the steady state equilibrium of per worker levels of capital, output, and consumption. (4) b)- Find the golden rule saving rate, and golden rule per worker levels of output, capital, and consumption. (4) c)- How much...
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.The Golden Rule in a Solow Model without a Cobb-Douglas Production Function Suppose that the per-worker production function is: 4k tk +3 where yt = Yt/L and kt = Kt/L A.Does this production function exhibit diminishing marginal product of capital? Illustrate and explain. Note that you can use calculus, but you can also create a table. Note that AKt+1- Akt+1 and: B.Suppose that the savings rate in this economy is 36 percent (s- 0.36) and the depreciation rate is 6...
1. Solow growth model: a. Draw the steady-state equilibrium by drawing the savings line and the investment line. Show the steady-state values of savings, investment and capital per worker. b. On the same graph, also draw the output per worker (or per-worker production function) line. At the steady-state, mark the level of consumption per worker and savings per worker. c. What is the growth rate of yt, Ct, kt (per-worker variables, represented with an "upperbar" in class) in the steady-state?...
Solow growth model: 1. a. Draw the steady-state equilibrium by drawing the savings line and the investment line. Show the steady-state values of savings, investment and capital per worker. b. On the same graph, also draw the output per worker (or per-worker production function) line. At the steady-state, mark the level of consumption per worker and savings per worker. c. What is the growth rate of yYt, Ct, kt (per-worker variables, represented with an "upperbar" in class) in the steady-state?...
9) According to the Solow model, an increase in the capital-labor ratio will A) always reduce steady state consumption per worker. B) always increase steady state consumption per worker. C) reduce steady state consumption per worker if the capital-labor ratio is below the Golden rule capital stock. D) increase steady state consumption per worker if the capital-labor ratio is below the Golden rule capital stock. in the 10) According to the Solow model, in the long run, an increase in...
Most questions answered within 3 hours.
-
An unknown amount of a compound with a molecular mass of 284.04
g/mol is dissolved in...
asked 1 minute ago -
You are at rest at a stop sign. There is another stop sign that
is 100...
asked 2 minutes ago -
Calculate the equilibrium electrode potential for Fe3+/Fe2+
redox system, if the initial concentration of Fe2+ is...
asked 6 minutes ago -
Describe in detail with graph and diagram how bonding force,
bonding curves and bonding energy at...
asked 23 minutes ago -
Gingerbread cookies become inedible if not eaten quickly enough.
Clarence is trying to determine how many...
asked 18 minutes ago -
A
crane lifts a 200 kg block a height of 10 m in 18 seconds. What...
asked 21 minutes ago -
A 12.0-g bullet is fired horizontally into a 115-g wooden block
that is initially at rest...
asked 21 minutes ago -
Which DNA primer would have the HIGHEST melting temperature?
Question 17 options:
a)
GCATCGGC
b)
AATCGGAT...
asked 29 minutes ago -
what is the charge on the chromium ion in Cr2O3.
a -3
b -2
c 0...
asked 29 minutes ago -
which of the following may lead to speciation?
a. a group of individuals from a mainland...
asked 35 minutes ago -
Please I need today answer for This question and it is very
important and I need...
asked 53 minutes ago -
Five years from today, you plan to invest $3,700 for 7
additional years at 5.8 percent...
asked 53 minutes ago