WRITING MUST BE CLEAR TO READ! 3. Country A and country B both have the production...
1. Country A and country B both have the production function Y = F(K,L)= VKL. (5 Points) Does this production function have constant returns to scale? Explain. (5 Points) What is the per-worker production function, y=f(k)? (10 Points) Assume that neither country experiences population growth or technological progress and that 5 percent of capital depreciates each year. Assume further that country A saves 10 percent of output each year and country B saves 20 percent of output each year. Using...
1. lounchPad LounchPad . Country Country A and country B both have the production function Y = F(K, L) = K1/312/3 Does this production function have constant returns to scale? Explain. b. What is the per-worker production function, y = f(k)? c. Assume that neither country experiences population growth or technological progress and that 20 percent of capital depreciates each year. Assume further that country A saves 10 percent of output each year and country B saves 30 percent of...
2. Consider two countries: Mahaliaville and UWIville. Both countries have the same production: Y = K Neither country experiences population growth nor technological progress and both countries have a depreciation rate of 10%. Ma- haliaville saves 10 percent of ouput each year and UWIville saves 30% of output each year. (a) Find the steady-state levels of capital per worker, income per worker and consumption per worker for each country. (b) If both countries start with a capital stock per worker...
2. Consider two countries: Mahaliaville and UWIville. Both countries have the same production: Y = K L Neither country experiences population growth nor technological progress and both countries have a depreciation rate of 10%. Ma- haliaville saves 10 percent of ouput each year and UWIville saves 30% of output each year. (a) Find the steady-state levels of capital per worker, income per worker and consumption per worker for each country. (b) If both countries start with a capital stock per...
A country has the following production function: Yt=Kt^0.5Lt^0.5 Assume that 5 percent of of capital depreciates each year and the country saves 20 percent of output each year. What is the per worker production function, What is the steady-state level of capital per worker? What is the steady-state level of output per worker? The steady-state level of consumption per worker is: The steady-state level of saving per person is: The growth rate of output per person in the steady-state is:
If y = k^1/2, the country saves 20 percent of its output each year, and the steady state level of capital per worker is 25, then the steady state levels of investment per worker and consumption per worker are?
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...
There are two countries, Anihc (country A) and Bapan (country B), with the same production function fk=5k0.5. 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: Find the steady state capital-labor ratio for each country. Find the steady state output per worker, and the steady state consumption per worker for each...
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. Answer questions 4 and 5 above for country...
The change of inputs and production function determine the level of output in the long run. Suppose an economy described by the Solow model utilize capital and labour in production process which technology parameter ofa=1/2. Assuming that population has zero growth rate and technology is constant (A=1): a. Write down production function for this country, determine output per worker as function of capital per worker and explain the steady state of capital condition (6 POINTS) b. If 8 and s...