Question

uestions 11-13 Consider the Romer model with the following parameter valu workers employed in research activities is 25%, research produ the workforce equals 200. Take year 2020 as the starting date. Calculate the innovation rate () and answer the your calculations. arameter values: A0-100, the share of research productivity is ze 1/1,000 and Question 11. Which of the following statements is correct ab 2025? ollowing question. Use two decimals in acements is correct about the economy in year a) The level of technology will be around 256. b) The level of technology will be around 112. c) The level of technology will be around 128. d) None of the above Question 12. Which of the following statements is correct about the economy in year 2050? a) Real GDP per capita will be approximately $78. b) Real GDP per capita will be approximately $324. c) Assuming households consume 50% of their income, consumption per capita will be $39. d) Assuming households consume 50% of their income, consumption per capita will be $432.

Answer 1

Romer Model : Production fwnction: Y., Ai Lyt . Growthrake of idea' : BAu e z AĻLar Resowece constraint: Lyt Lat = L Auocation of laioor. Lai- ii C-)L A C- At with oo, 1 : 025 ,. A 00(-9-2p x o 25 x 2d 3 324.8 Яa = 127'6 Correct option is Thum ne (0 5) xl00x07 x 200 - 61829 14 12. Real CDP pex capita : 3 21 15 The correct option r: (b)