Calculate the equilibrium level of capital per worker

Assignment Help Macroeconomics
Reference no: EM132482864

What are two key differences between the Malthusian and Solow models of economic In the Solow growth mode, suppose that the per-worker production function is y=zf(k)=zk^0.3 with s=0.2, d=0.1, n= 0.02 

Country A has total factor productivity z=1 while country B has z=2. 

A. Calculate the equilibrium level of capital per worker (k*) in both countries 

B. What is the steady state level of income per capita in both countries? 

C. Do differences in total factor productivity contribute to differences in standards of living across countries?

Reference no: EM132482864

Questions Cloud

Journalize declaration of the cash dividends on december : Journalize the declaration of the cash dividends on December 10, 2019 Journalize the payment of the cash dividends on January
Fundamental premise of universal basic income : What is the fundamental premise of Universal Basic Income?
Create journal entry to record the initial issuance of bond : Assume instead that the bond was convertible into common shares at the maturity date into common shares based on the market value of common shares
What would you do as a citizen of omelas : Write a reaction to the story. What would you do as a citizen of Omelas? Why? What would a good utilitarian do? Are utilitarian values morally defensible
Calculate the equilibrium level of capital per worker : What are two key differences between the Malthusian and Solow models of economic In the Solow growth mode, suppose that the per-worker production function
How large will last payment be : What's the future value of a 6%, 5-year ordinary annuity that pays $300 each year? If this was an annuity due, what would its future value be?
What is jpm leverage ratio : An economic downturn causes 20 percent of the local businesses to declare bankruptcy and default on their loans. Show JPM's new balance sheet.
Explain the two effects that drive changes in nominal wages : 1. How long does it take (roughly) for monetary policy to have an effect on real GDP?
Stage of the production process for goods : Assume Congress passes a law requiring anti-pollution devices be installed at every stage of the production process for goods made in the United States.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Exchange rate between the united states and china

Suppose the exchange rate between the United States and China changed from 1USD=6.6CNY to 1USD=6CNY. In addition, there is sudden inflation in the United States but, but not in China.

  Specific resolution of the issue

A number of currency crises have affected certain countries, which have also resulted in contagion in the sense that the crises affected neighboring countries. In a critical essay, select a country (or countries) affected by a specific currency cr..

  Explain what is the countrys unemployment rate

What is the country's unemployment rate? How does it compare to the United States' unemployment rate? Are they better off or worse off than us?

  Question regarding the maximum price the airline

What is the maximum price the airline should be willing to pay for a new A-320neo? Note:  This computation is easiest to perform using MS Excel. The Excel computations may be copied and pasted into MS Word.

  Determine whether or not null hypothesis should be rejected

Suppose the average puppy weighs 10 pounds. A sample of 10 puppies yields a sample mean of 13.2 pounds and a sample standard deviation of 2.78 pounds. Assume the population standard deviation is known to be 5.25.

  What would happen to consumption

What would happen to consumption, saving, and work if the government borrowed money to wage war and only paid the interest payments

  What is the effect on the economy

ECON A232 - Introduction to Macroeconomics - Explain why net exports and net capital outflow are always equal - Explain why higher real interest rates lead

  What is the value added by each person

A farmer grows a bushel of wheat and sells it to a miller for $1.00. The miller turns the wheat into flour and sells it to a baker for $3.00. The baker uses the flour to make bread and sells the bread to an engineer for $6.00. The engineer eats the b..

  Illustrate what yield curve shape is depicted

Illustrate what yield curve shape is depicted if intermediate term tresury securities yield

  Calculation of the most payment to complete development

Our salespeople report that the arrival of new competing products has reduced expected sales of your new product to $3 million. what is the most you should pay to complete development.

  Classical production function with constant returns

If we have a classical production function with constant returns to scale, population growth, and labor-augmenting technological progress Yt = F(Kt,EtLt)

  What is the impact of opening trade on real wage in russia

Suppose when Russia opens to trade, it imports automobiles, a capital-intensive good. According to the Heckscher-Ohlin theorem, is Russia capital-abundant.

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