Countries x and y differ in population growth rates and

Assignment Help Microeconomics
Reference no: EM13378129

Countries X and Y differ in population growth rates and rates of investment.
Country X: investment (or savings) is 20% of GDP, population grows at 0% per year
Country Y: investment (savings) is 5% of GDP, population grows at 4% per year.

Both countries have the same rate of depreciation (5%). Use the Solow model to calculate the ratio of their steady state levels of income per capita, assuming ? =1/3.

a) Verbally, interpret your answer.

b) How would your result change if ? =1/2?

Reference no: EM13378129

Questions Cloud

Say you are the manager of a perfectly competitive firm : say you are the manager of a perfectly competitive firm selling a product. your business is making a loss because total
1which of the following situations will arise in the : 1.which of the following situations will arise in the domestic market following the removal of an import quota? a.
1 occurs when a firm cuts prices below production costs in : 1. occurs when a firm cuts prices below production costs in a deliberate attempt to drive competitors out of business.
Mick and donald run a fast food outlet on queen street for : mick and donald run a fast food outlet on queen street. for most of the day mick and donald are able to keep up with
Countries x and y differ in population growth rates and : countries x and y differ in population growth rates and rates of investment.country x investment or savings is 20 of
A country is described by the solow model with a production : a country is described by the solow model with a production function y k12 where y is output per worker and k is
Explain why the management accounting information from : explain why the management accounting information from the traditional responsibility accounting system fails
1 according to one automobile group after the city imposed : 1 according to one automobile group after the city imposed the congestion fee average speeds in central londona
1 the focus of management accounting over time has changed : 1. the focus of management accounting over time has changed. which is the correct historical order for the following

Reviews

Write a Review

Microeconomics Questions & Answers

  What are the two types of government spending categories

The governments at certain times have said they are going to cut the federal budget to decrease government spending. What are the two types of government spending categories and what roles do they play.

  What is the lerner index for this industry

The top four firms in Industry A have market shares of 30, 25, 10, and 5 percent, respectively. The top four firms in Industry B have market share of 15, 12, 8, and 4 percent, respectively. Calculate the four-firm concentration ratios for the two ind..

  To improve the performance of the company

The employees of Abs "R" Us, which includes 12 fitness parlors in and around the metro area, feel they can improve the performance of the company.

  1 in problem 1 sir plus has a demand function for mead that

1. in problem 1 sir plus has a demand function for mead that is given by the equation dp 100 - p. if the price of mead

  Would higher or lower rates increase the incomes of agents

Insurance agents receive a commission on the policies they sell. Many states regulate the rates that can be charged for insurance. Would higher or lower rates increase the incomes of agents. Explain, distinguishing between the short run and the lo..

  What is comparative and absolute advantage

What is absolute advantage What is comparative advantage Is itpossible for a country to have a comparative advantage in producinga good without also having an absolute advantage

  Monopolistic competition-perfect competition

Which of the following is a characteristic of both monopolistic competition and perfect competition?

  The probability for a randomly selected borrower

Assume the standard deviation is $3,730 and that debt amounts are normally distributed or what is the probability that the debt for a randomly selected borrower with good credit is more than $18,000?

  Graph of the production possibilities frontiers

What is the graph of the production possibilities frontiers for the American and Japanese economies if American worker can produce 10 tons of grain a year and Japanese worker can produce 5 tons a year?

  How to reduce the governments outstanding debt

Assume that the treasury is currently running large surpluses (tax collections exceed new government spending). On a S/D diagram show the effect on Treasury Bond markets of using these surpluses to buy back outstanding treasury securities.

  How to shift the demand for health care leftward

The price elasticity of demand for health care is such that an increase in the price of health care will: decrease total health care expenditures. increase total health care expenditures. shift the demand for health care rightward. shift the deman..

  What price will buyers pay after the tax is imposed

For the next 3 questions, assume that there is a $8 per unit excise tax levied on the consumers of the product. C) What price will buyers pay after the tax is imposed D) What is the deadweight loss created by the tax E) What is the quantity of the go..

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