1) Consider an economy with the following the production function: Y = F(K,L) = K^0.4L^0.6 a)...
1) Consider an economy with the following the production function: Y = F(K,L) = K^0.4L^0.6
a) Find output per worker
b) Find the marginal product of capital
c) Find the steady state level of capital per worker given a savings rate of 0.1, the depreciation rate of 0.2, and population growth of 0.05
d) Show graphically or analytically what will happen if there is a decrease in the rate of depreciation. What effect does this have on steady-state levels of capital per worker, output per worker, investment per worker, and consumption per worker?
Homework Answers
Add Answer to:
1) Consider an economy with the following the production
function: Y = F(K,L) = K^0.4L^0.6
a)...
5. Calibrated Cobb-Douglas Growth Model Assume an economy has the following production function: Y = F(K,...
5. Calibrated Cobb-Douglas Growth Model Assume an economy has the following production function: Y = F(K, AL) = K 0.4 (AL)0.6. (a) Write down the production function per effective worker. (20 marks) (b) For this economy, the savings rate is 20%, the depreciation rate is 10% per year, the population growth rate is 2% per year, and the technology growth rate is 3% per year. Calculate the steady-state capital stock per effective worker, output per effective worker, and consumption per...
When St=0.4Yt，k? y? c? Suppose that an economy has the per-worker production function given as: y...
When St=0.4Yt，k? y? c?
Suppose that an economy has the per-worker production function given as: y = 3405 where y is output per worker and k is capital per worker. In addition, national savings is given as: S = 0.37 where S is national savings and Y is total output Use the production and savings functions on your left and the depreciation and population growth rates below to answer the following questions. (Round all numerical responses to one decimal place)...
Consider an economy described by the production function: Y = F(K, L) = (0.25 0.75 a....
Consider an economy described by the production function: Y = F(K, L) = (0.25 0.75 a. What is the per-worker production function? y= b. Assuming no population growth or technological progress, find the steady-state capital stock per worker (k*), output per worker (y*), and consumption per worker (c*) as a function of the saving rate and the depreciation rate. k* = y* =
Suppose that an economy has the per-worker production function given as: y = 345 where y...
Suppose that an economy has the per-worker production function given as: y = 345 where y is output per worker and kis capital per worker. In addition, national savings is given as: S, = 0.3Y where S is national savings and Y is total output Use the production and savings functions on your left and the depreciation and population growth rates below to answer the following questions. (Round all numerical responses to one decimal place.) Depreciation rate (d) = 0.1...
For question 3, assume the following about an economy: 1. y = f(k)=k", where a = 0.25 2. S=0.3 3. 8=0.2 4. n=0.05 5...
For question 3, assume the following about an economy: 1. y = f(k)=k", where a = 0.25 2. S=0.3 3. 8=0.2 4. n=0.05 5. g=0.02 3. Answer the following: [10 Points] a) [4 Points) Find the steady state capital per effective worker, output per effective worker, investment per effective worker, and consumption per effective worker. b) [4 Points) Find the steady-state growth rate of capital per worker, output per worker, investment per worker, and consumption per worker. c) (2 Points)...
0.5 Suppose that an economy has the per-worker production function given as: Vt 4kt, where y...
0.5 Suppose that an economy has the per-worker production function given as: Vt 4kt, where y is output per worker and k is capital per worker In addition, national savings is given as: St0.20Y where S is national savings and Y is total output The depreciation rate is d 0.05 and the population growth rate is n 0.05 The steady-state value of the capital-labor ratio, k is 64.00 The steady-state value of output per worker, y is 32.00. The steady-state...
Assume an economy is populated by L workers with total capital stock K. Production of this...
Assume an economy is populated by L workers with total capital stock K. Production of this KL. Suppose household's saving rate s economy is organized by Y 0.6, and firm's depreciation rate of capital d = 0.1. The rule for accumulation of captial in per worker terms is of the time-to-build type: A k = i - ôk Standard Transformation of the Production Function a. Show that the production function is constant return to scale (CRS) b. Rewrite the production...
An economy has the following production function: Y = K1/2L 1/2 There is no technological growth...
An economy has the following production function: Y = K1/2L 1/2 There is no technological growth in the economy. Some more additional details known about the economy: • The savings rate (s) is equal to 0.4. • The population growth rate (n) is equal to 0.03. • Depreciation rate (δ) is at 0.07. (a) Derive the function of output per worker in terms of capital per worker. (b) Find the steady state levels of capital per worker, output per worker...
Suppose that an economy has the per-worker production function given as: y = 4k., where y...
Suppose that an economy has the per-worker production function given as: y = 4k., where y is output per worker and k is capital per worker. In addition, national savings is given as: S, = 0.10Y, where S is national savings and Y is total output. The depreciation rate is d = 0.10 and the population growth rate is n = 0.10. The steady-state value of the capital-labor ratio, kis 4.00. The steady-state value of output per worker, y is...
ALL OF THE QUESTIONS PLS!!! Assume an economy is populated by L workers with total capital stock K. Production of this...
ALL OF THE QUESTIONS PLS!!!
Assume an economy is populated by L workers with total capital stock K. Production of this KL. Suppose household's saving rate s economy is organized by Y 0.6, and firm's depreciation rate of capital d = 0.1. The rule for accumulation of captial in per worker terms is of the time-to-build type: A k = i - ôk Standard Transformation of the Production Function a. Show that the production function is constant return to scale...
5. Calibrated Cobb-Douglas Growth Model Assume an economy has the following production function: Y = F(K, AL) = K 0.4 (AL)0.6. (a) Write down the production function per effective worker. (20 marks) (b) For this economy, the savings rate is 20%, the depreciation rate is 10% per year, the population growth rate is 2% per year, and the technology growth rate is 3% per year. Calculate the steady-state capital stock per effective worker, output per effective worker, and consumption per...
When St=0.4Yt，k? y? c?
Suppose that an economy has the per-worker production function given as: y = 3405 where y is output per worker and k is capital per worker. In addition, national savings is given as: S = 0.37 where S is national savings and Y is total output Use the production and savings functions on your left and the depreciation and population growth rates below to answer the following questions. (Round all numerical responses to one decimal place)...
Consider an economy described by the production function: Y = F(K, L) = (0.25 0.75 a. What is the per-worker production function? y= b. Assuming no population growth or technological progress, find the steady-state capital stock per worker (k*), output per worker (y*), and consumption per worker (c*) as a function of the saving rate and the depreciation rate. k* = y* =
Suppose that an economy has the per-worker production function given as: y = 345 where y is output per worker and kis capital per worker. In addition, national savings is given as: S, = 0.3Y where S is national savings and Y is total output Use the production and savings functions on your left and the depreciation and population growth rates below to answer the following questions. (Round all numerical responses to one decimal place.) Depreciation rate (d) = 0.1...
For question 3, assume the following about an economy: 1. y = f(k)=k", where a = 0.25 2. S=0.3 3. 8=0.2 4. n=0.05 5. g=0.02 3. Answer the following: [10 Points] a) [4 Points) Find the steady state capital per effective worker, output per effective worker, investment per effective worker, and consumption per effective worker. b) [4 Points) Find the steady-state growth rate of capital per worker, output per worker, investment per worker, and consumption per worker. c) (2 Points)...
0.5 Suppose that an economy has the per-worker production function given as: Vt 4kt, where y is output per worker and k is capital per worker In addition, national savings is given as: St0.20Y where S is national savings and Y is total output The depreciation rate is d 0.05 and the population growth rate is n 0.05 The steady-state value of the capital-labor ratio, k is 64.00 The steady-state value of output per worker, y is 32.00. The steady-state...
Assume an economy is populated by L workers with total capital stock K. Production of this KL. Suppose household's saving rate s economy is organized by Y 0.6, and firm's depreciation rate of capital d = 0.1. The rule for accumulation of captial in per worker terms is of the time-to-build type: A k = i - ôk Standard Transformation of the Production Function a. Show that the production function is constant return to scale (CRS) b. Rewrite the production...
Suppose that an economy has the per-worker production function given as: y = 4k., where y is output per worker and k is capital per worker. In addition, national savings is given as: S, = 0.10Y, where S is national savings and Y is total output. The depreciation rate is d = 0.10 and the population growth rate is n = 0.10. The steady-state value of the capital-labor ratio, kis 4.00. The steady-state value of output per worker, y is...
ALL OF THE QUESTIONS PLS!!!
Assume an economy is populated by L workers with total capital stock K. Production of this KL. Suppose household's saving rate s economy is organized by Y 0.6, and firm's depreciation rate of capital d = 0.1. The rule for accumulation of captial in per worker terms is of the time-to-build type: A k = i - ôk Standard Transformation of the Production Function a. Show that the production function is constant return to scale...
Most questions answered within 3 hours.
-
Write a program to solve the Josephus problem, with the following
modification:
Sample Input:
./a.out n...
asked 2 hours ago -
At the start of a CD it is spinning at a rate of 525 rpm
(revolutions...
asked 3 hours ago -
4. Without doing any calculations, predict whether the observed
∆T would increase, decrease or remain the...
asked 4 hours ago -
Based on the range, which of the following sets of scores has
the greatest variability? 3,...
asked 5 hours ago -
Ripples in a pond travel at a velocity of 3 m/s with one peak
passing a...
asked 5 hours ago -
A man stands on the roof of a building of height 13.0 mm and
throws a...
asked 5 hours ago -
The extent to which assets are financed by borrowed funds and
other liabilities is indicated by:...
asked 6 hours ago -
Explain in detail
Germany is the fifth largest economy
explain what goods and services Germany specializes...
asked 6 hours ago -
The density of platinum is 21.45 g/mL. If a cube of platinum
with a mass of...
asked 6 hours ago -
Accounts Receivable
Sales
A/R Posting
Extended Sales Invoice
Packing Slip
Compare invoice to packing slip 2...
asked 6 hours ago -
Michaella, age 23, is a full-time law student and is claimed by
her parents as a...
asked 6 hours ago -
Why are polymers not typically casted into products?
asked 7 hours ago