3. A country with a higher saving rate (s) will end up having A) a higher...
3. A country with a higher saving rate (s) will end up having
A) a higher output per worker in the long run
B) a lower output per worker in the long run
C) the same output per worker of a country with a lower saving rate
D) the saving rate does not affect the output per worker in the long run
Homework Answers
Add Answer to:
3. A country with a higher saving rate (s) will end up
having
A) a higher...
1. Let's review the setup of the Solow growth model with saving rate s, constant population...
1. Let's review the setup of the Solow growth model with saving rate s, constant population growth rate n, and constant technology growth rate g Kt+1(1-8)K Lt+ 1 = (1 + n) Et+1-(1+g)E a) b) c) What is the steady-state capital and output per effective worker? (5pts) Solve for the golden rule level of capital. What is the saving rate then? (5pts) Many health experts have argued that malnutrition leads to reduced work capacity. Suppose in the Solow model, this...
1. Let's review the setup of the Solow growth model with saving rate s, constant population...
1. Let's review the setup of the Solow growth model with saving rate s, constant population growth rate n, and constant technology growth rate g Kt+1(1-8)K Lt+ 1 = (1 + n) Et+1-(1+g)E a) b) c) What is the steady-state capital and output per effective worker? (5pts) Solve for the golden rule level of capital. What is the saving rate then? (5pts) Many health experts have argued that malnutrition leads to reduced work capacity. Suppose in the Solow model, this...
pls solve parts f,g,h Suppose Country X's initial capital per effective worker (K/AN) ratio is 16,...
pls solve parts f,g,h
Suppose Country X's initial capital per effective worker (K/AN) ratio is 16, while Country Z's initial capital per effective worker (KAN) ountries have the same production function: F(K, A,N) = 10K, 5(AN)05 (a) Derive the output per effective worker. The evolution of the capital stock is given by K +1 = (1 - 6)K, + I, where is the depreciation rate. (b) Derive and show that in the long-run growth model, the steady state capital per...
(15 Points) What saving rate maximizes output per worker for each country? What saving rate maximizes...
(15 Points) What saving rate maximizes output per worker for each country? What saving rate maximizes consumption per worker for each country? And find the Golden Rule level of consumption, output, investment per worker for each country.
Suppose that all countries are identical in their saving rate and depreciation rate, and have the...
Suppose that all countries are identical in their saving rate and depreciation rate, and have the same aggregate production function. Suppose that the countries are different only in the population growth rate. What is the implication of the Solow model for output per worker in the long-run for each country? Explain why.
Problem 2 Consider two economies: San Escobar and New Ireland. Both are described by a neoclassical...
Problem 2 Consider two economies: San Escobar and New Ireland. Both are described by a neoclassical Cobb-Douglas production function: Y = KOS(A N.)0,5. In San Escobar the saving rate is s=0,5; the rate of population growth n=0,01; the depreciation rate is d 0,01 and the rate of technological progress is g=0,03. In New Ireland, the saving rate is s=0,6; the rate of population growth n=0; the depreciation rate is d=0,01 and the rate of technological progress is g=0,02 a) In...
12. When the Federal Reserve increases the money supply, at a given price level the amount...
12. When the Federal Reserve increases the money supply, at a given price level the amount of output demanded is and the aggregate demand curve shifts a. greater, inward b. greater, outward c. lower, inward d. lower, outward 13. Aggregate supply is the relationship between the quantity of goods and services supplied and the a. Money supply b. Unemployment rate c. Interest rate d. Price level If a short-run equilibrium occurs at a level of output above the natural level,...
An economy (country A) has a Cobb-Douglas production function: Y = K0.4 (LE) 0.6 The economy...
An economy (country A) has a Cobb-Douglas production function: Y = K0.4 (LE) 0.6 The economy has a saving rate of 48 percent, a depreciation rate of 2 percent, a rate of population growth of 1 percent, and a rate of labor-augmenting technological change of 3 percent. Assume there is a second economy (country B) with everything identical to country A except for the rate of population growth, which is 2 percent. Assume there is a third economy (country C)...
12. Assume two economies are identical in every way except that one has a higher population...
12. Assume two economies are identical in every way except that one has a higher population growth rate. According to the Solow growth model, in the steady state the country with the higher population growth rate will have a ______ level of output per person and ______ rate of growth of output per worker as/than the country with the lower population growth rate. A) lower; a lower B) higher; the same C) higher; a higher D) lower; the same
3.) There are two countries, Anihc (country A) and Bapan (country B), with the same production...
3.) There are two countries, Anihc (country A) and Bapan (country B), with the same production function . However, country A has saving rates of 0.2, depreciation rate of 0.2 and population growth of 0.2; while country B has saving rates of 0.1, depreciation rate of 0.15 and population growth of 0.05. Using the Solow model: a.) Find the steady state capital-labor ratio for each country. b.) Find the steady state output per worker, and the steady state consumption per...
1. Let's review the setup of the Solow growth model with saving rate s, constant population growth rate n, and constant technology growth rate g Kt+1(1-8)K Lt+ 1 = (1 + n) Et+1-(1+g)E a) b) c) What is the steady-state capital and output per effective worker? (5pts) Solve for the golden rule level of capital. What is the saving rate then? (5pts) Many health experts have argued that malnutrition leads to reduced work capacity. Suppose in the Solow model, this...
1. Let's review the setup of the Solow growth model with saving rate s, constant population growth rate n, and constant technology growth rate g Kt+1(1-8)K Lt+ 1 = (1 + n) Et+1-(1+g)E a) b) c) What is the steady-state capital and output per effective worker? (5pts) Solve for the golden rule level of capital. What is the saving rate then? (5pts) Many health experts have argued that malnutrition leads to reduced work capacity. Suppose in the Solow model, this...
pls solve parts f,g,h
Suppose Country X's initial capital per effective worker (K/AN) ratio is 16, while Country Z's initial capital per effective worker (KAN) ountries have the same production function: F(K, A,N) = 10K, 5(AN)05 (a) Derive the output per effective worker. The evolution of the capital stock is given by K +1 = (1 - 6)K, + I, where is the depreciation rate. (b) Derive and show that in the long-run growth model, the steady state capital per...
(15 Points) What saving rate maximizes output per worker for each country? What saving rate maximizes consumption per worker for each country? And find the Golden Rule level of consumption, output, investment per worker for each country.
Problem 2 Consider two economies: San Escobar and New Ireland. Both are described by a neoclassical Cobb-Douglas production function: Y = KOS(A N.)0,5. In San Escobar the saving rate is s=0,5; the rate of population growth n=0,01; the depreciation rate is d 0,01 and the rate of technological progress is g=0,03. In New Ireland, the saving rate is s=0,6; the rate of population growth n=0; the depreciation rate is d=0,01 and the rate of technological progress is g=0,02 a) In...
12. When the Federal Reserve increases the money supply, at a given price level the amount of output demanded is and the aggregate demand curve shifts a. greater, inward b. greater, outward c. lower, inward d. lower, outward 13. Aggregate supply is the relationship between the quantity of goods and services supplied and the a. Money supply b. Unemployment rate c. Interest rate d. Price level If a short-run equilibrium occurs at a level of output above the natural level,...
Most questions answered within 3 hours.
-
You plan to save $5,700 per year for the next 10 years. After
the last deposit,...
asked 27 minutes ago -
On January 1, 2019, ABC Corp. borrowed $81,000 by signing an
installment loan. The loan will be...
asked 31 minutes ago -
Enzyme X exhibits maximum activity at pH = 5.25. X shows a sharp
decrease in its...
asked 46 minutes ago -
Postulate a reason for why so many aliphatic amino acids are
essential.
asked 45 minutes ago -
Three samples were taken of 4 different dog food bags and their
weights were recorded:
Sample/Observation...
asked 49 minutes ago -
The Beatles had 27 number one hits; a radio station asks
listeners to send in a...
asked 47 minutes ago -
Help with Java Program Please
Create a simple graph class. The graph class should have the...
asked 47 minutes ago -
Which of the following statements is true regarding the nature
of culture?
A.We are born with...
asked 1 hour ago -
(a) 2
NO2(g) à 2
NO(g) +
O2(g)
The rate law for this reaction
is 2nd...
asked 1 hour ago -
Write the overall reaction for the RedOx
reaction (below) when it occurs in an acidic environment....
asked 1 hour ago -
Two forces are acting on an object. Force 1 on the object is 6.0
N and...
asked 1 hour ago -
You are planning for retirement. You plan to work for 20 years.
Starting a year from...
asked 1 hour ago