This question will take more time to answer This question aims to explore some of the points discussed about the Solow-Swarn with the general Cobb-Douglas production function: Y = A KO L(1-0) The equation describing capital dynamics is: Ki+1 = Kị + lị - dK Where d is a constant parameter that captures the depreciation rate. Investment fo discussed in class, ie, a constant 's' fraction of output is invested in every period. A the rate n = 0 and let s = 0.60, d = 0.10, a = 0.5, L= 1and A= 1. Which one of the following answer is correct about the steady state equilibrium? %3D

This question will take more time to answer This question aims to explore some of the points discussed about the Solow-Swarn with the general Cobb-Douglas production function: Y = A KO L(1-0) The equation describing capital dynamics is: Ki+1 = Kị + lị - dK Where d is a constant parameter that captures the depreciation rate. Investment fo discussed in class, ie, a constant 's' fraction of output is invested in every period. A the rate n = 0 and let s = 0.60, d = 0.10, a = 0.5, L= 1and A= 1. Which one of the following answer is correct about the steady state equilibrium? %3D

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter5: Business And Economic Forecasting

Section: Chapter Questions

Problem 4E

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Consider the Solow model (Y-AK1/4L3/4). Suppose that the productivity parameter is A=500, the depreciation rate is d=1/10, the savings (investment) rate is s=0.30, and the labor force is constant and equal to 2 million. ÊÊWhat is the steady state capital stock (K)? Please choose the closest answer." a. b. 48200 million C. 34341 million d. 15930 million 18340 million
suppose the production formula is given by yt= kt ^1/3 where y is the output per worker and k is the capital per worker. futhermore assume that the saving rate is exogenous and the capital deprecitates at delta rate. if the sum of both deprectiation rate and saving rate equals 1, answer the questions below 1. find the steady state values of capital, output, investments and consumption as functions of the saving rate only? 2. in a diagram show the steady state value values in a part (a)?
Hello I need help to find the answer for my econ 101 hw for a question as follows: Assume that the production function for a country is given by ?=√K and annual investment is given by the function ?=?×? where γ=0.270, and that the yearly depreciation rate is 4.50%. Suppose that this year, the output in the country is 1, and a neighbor country's output is 50% higher. Calculate the time it would take for the country's output to catch up with its neighbor's output. Assume the neighbor country's economy is neither growing nor shrinking. I will be also attaching the original problem for your reference as I just need to find the time that it would take the country's output to catch up with its neighbor's output. Thank You and please refer to the image to further assist with the question that I want answered.
Assume there are only two producing sector Y & Z in an economy. Calculatea) Gross value added at market price by each sector b) National income from the followings:Items Amount in CroresNet factor income from abroad- 20Sales by Y= 1000Sales by Z= 2000Change in stock of Z= -200C Closingstock of Y= 50 Opening stock of Y= 100Consumption of fixed capital by Y & Z= 180Indirect taxes paid by Y & Z= 120Purchase of raw material by Y= 500Purchase of raw material by Z= 600Exports by Z= 70
2) Consider an economy with depreciation 6=.2, saving rate s = .1. Worker productivity grows at rate g = .1. The economy starts with 5 units of capital per worker. The productivity function is given by: 2tnioq S) m6x9 grit no bazzim 23 0 2 2 19 0 f(k) = 3* k1/3 (1916978 zi 19verlɔirlw how to two lapiolandotdwong noitsluqoq TUOHTIW lebom wolo2011 ( The Marginal Product of capital is therefore 100037950 1 ritwong ytivitoub 1910 190 stign .6 MPK = 3* know 19q gniv brs (19) a. Using the above parameters, what is the golden rule steady state capital per (effective) worker? Please show your work below.
suppose that the production function is cobb douglas a. find the expression for k*, y* and c* as functions of the parameters of the model, s, n, 8 Show Transcribed Text b. what is the golden-rule value of k c. what saving rate is needed to yield the golden - rule capital stock?
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How does an increase in the capital depreciation rate & affect the steady-state consumption rate C*/Y*? What happens to this effect as a → 0?
Households across a nation face a reduction in wealth. As a result, savings will increase dispos able decrease not change and disposable income will increasedisposabledecreasenot change. This will lead to a/an increasedisposabledecreasenot change in supply of loanable funds. Therefore the equilibruim level of investment will