Based on the solow growth model

Assignment Help Business Economics
Reference no: EM131244596

Income per person exceeds $25,000 in many countries, but it is below $1,000 per person in many other countries. Based on the Solow growth model, suggest at least four possible explanations for this gap in living standards.

Reference no: EM131244596

Questions Cloud

Change in consumer surplus as result of the price ceiling : Consider the global market for crude oil Suppose there exists a single crude oil producer. This producer has a supply function for crude oil given by: If the crude oil producer acts as price-taking firm, what is the change in consumer surplus as a re..
Consider the utility function-using the lagrangian method : Consider the utility function U=(x-θ)^α (y-ρ)^(1-α). (a) Provide an intuitive explanation for this kind of preferences; that is, what roles do θ and ρ play? (b) Solve for the optimal combination of x and y. (c) Solve for the indirect utility function..
Population growth-labor-augmenting technological progress : The Solow model with population growth and labor-augmenting technological progress predicts balanced growth in the steady state. Growth rates of which variables are predicted to be balanced (i.e., will be equal) in the steady state?
The financial sector of the economy : The Financial sector of the economy: US farmers and ranchers who do not export thier products:
Based on the solow growth model : Income per person exceeds $25,000 in many countries, but it is below $1,000 per person in many other countries. Based on the Solow growth model, suggest at least four possible explanations for this gap in living standards.
Compare the steady-state levels of output per worker : Consider two countries that are otherwise identical (have the same saving rates and depreciation rates), but the population of Country Large is 100 million, while the population of Country Small is 10 million. Use the Solow model with no technologica..
Broad empirical regularities associated with growth : What are the broad empirical regularities associated with growth and development that modern theories of economic growth attempt to explain? Enumerate and describe briefly.
Permanent increase in the rate of technological progress : Suppose that manna from heaven falls faster and there is a one-time permanent increase in the rate of technological progress, so g rises to g’. What does this imply for the growth rate of output per worker over time? Explain in analytical and graphic..
Long run effects of one-time increase in stock of labor : What are the short run and long run effects of a one-time increase in the stock of labor (because of, for example, a particularly large cohort of college graduates joining the labor force)?

Reviews

Write a Review

Business Economics Questions & Answers

  Market values for property tax computations

The property appraisal office for Mobile County has just installed new software to track residential market values for property tax computations. The manager wants to know the total equivalent cost of all future costs incurred when the county commiss..

  What will happen to the value of the dollar

what will happen to the value of the dollar? Use the demand-supply model of the dollar to explain.

  Provide an outline of your paper on minimum wage

Assignment: For this assignment, provide an outline of your paper On minimum Wage, and at least five sources (in APA format) that you are using. Your outline should include the five economic concepts that you will apply to your topic analysis as well..

  Explain the math involved in finding the spne of stage game

Can you explain the math involved in finding the SPNE of the stage games in repeated games in game theory. I understand the concept; I just don't understand how to solve the math aspect of the questions. I do not have a solid background in math, and ..

  If a severe drought decreased labour productivity

If a severe drought decreased labour productivity in Zambia, explain what will happen to each of the following.

  Compute the doubling time for Frances per capita real GDP

The rate of economic growth per capita in France from 1996 to 2000 was 1.9% per year, while in Korea over the same period it was 4.2%. Per capita real GDP was $28,900 in France in 2003, and $12,700 in Korea. Assume the growth rates for each country r..

  Explain how many bushels of corn are purchased by consumers

Explain how many bushels of corn are purchased by consumers and at what price. How many bushels of corn are purchased by the government and at what price.

  How does the fed take money out of the banking system

The Federal Reserve took money out of the banking system to raise the federal funds rate-the rate at which banks lend each other money overnight-from 4 percent to 4.5 percent. How does the Fed take money out of the banking system? Explain how doing s..

  What is the amount of this bank reserves

What is the amount of this bank's deposits that are in M2? What is the amount of this bank's reserves?

  Assume country is in fixed exchange rate regime

The following questions are based on fixed exchange rate and/or flexible exchange rate regime from the perspective of macroeconomic policy implications in an open macroeconomic model. Assume a country is in a fixed exchange rate regime such as China...

  Case for federal reserve independence includes the idea

The case for the Federal Reserve independence includes the idea that

  Using the economics of the firm-multi-billionaire who claims

Republican presidential candidate Donald Trump is a multi-billionaire who claims that, if elected, he would run the country like a business firm. Using the economics of the firm, explain why this may not be so

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd