In the Solow growth model with population growth of 5 percent and a labor augmenting technological...
In the Solow growth model with population growth of 5 percent and a labor augmenting technological progress of 3 percent, the economy's:
A. number of workers grow at 5 percent while the number of effective workers grow at 3%.
B. number of workers grow at 3 percent while the number of effective workers grow at 8 percent.
C. number of workers grow at 5 percent while the number of effective workers grow at 2 percent.
D. number of workers grow at 5 percent while the number of effective workers grow at 8 percent.
Homework Answers
In the Solow growth model with a population growth of 5 percent and labor-augmenting technological progress of 3 percent, the economy's:
The number of workers grows at 5% whereas the number of effective workers grows at 5+3 =8%
option(D)
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In the Solow growth model with population growth of 5 percent
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The Solow model with technological progress.In the lecture, we talked about the Solow model with technological progress and populationgrowth. Now consider a simpler model with only technological progress. Denote thetechnology level at time \(\mathrm{t}\) by \(\mathrm{A}_{\mathrm{t}}\), and the growth rate of technology by \(\mathrm{g}_{\mathrm{A}}\). The number ofworker is constant, \(\mathrm{N}\). The production function is given by$$ Y_{t}=K_{t}^{\alpha}\left(A_{t} N\right)^{1-\alpha} $$where \(\alpha\) is a constant.(a) Define \(x_{t}=X_{t} / A_{t} N\), where \(X_{t}\) stands for all relevant aggregate variables in the model.Write down...
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