Determine by how much does output increase

Assignment Help Econometrics
Reference no: EM13203452

Consider again the Solow growth model and the following production function:

a). If A = 2, L = 20,000, and K = 400, what is output?
b). Suppose the labor force grows by 5% so that it is now 21,000. By how much does output increase?
c). Starting again with the conditions in part a, what is capital increases by 5%, so that it is now 420. By how much does output increase?

Reference no: EM13203452

Questions Cloud

Compute the work required to compress a spring : compute the work required to compress a spring 3 more cm when it is already compressed 2 cm, assuming that the spring constant is k + 150 kg/s^2
Find the perimeter of one of the smaller rectangles : find the perimeter of one of the smaller rectangles using systems of equations.
Find the standard deviation of the population of weight loss : he guesses that the standard deviation of the population of weight loss is about 12 pounds. How large a sample should he take to estimate the mean weight loss to within 4 pounds, with 95% confidence?
What was driving the market : Analyze the market over the week. What was driving the market? What do you think caused the changes in the market and the Dow Jones and other indices you may have selected? Did the market react quickly to news?
Determine by how much does output increase : Consider again the Solow growth model and the following production function: a). If A = 2, L = 20,000, and K = 400, what is output b). Suppose the labor force grows by 5% so that it is now 21,000. By how much does output increase
Explain the minumum amount of material : A company wishes to manufacture a box with a value of 28 cubic feet that is open on top and is twice as long as it is wide. Find the width of the box that can be produced using the minumum amount of material.
Find the rate of change of carbon monoxide with respect : Ecologists estimated that when population of a city is x thousand persons, the average level carbon monoxide in the air above the city will be L ppm(parts per million) where L=10+0.4x+0.0001x^2 .
Preparing an analysis of the market : Create your portfolio. First, set out your investment objectives and decide how much risk you are willing to take. You may invest for yourself or for an imaginary client.
Determine what will be the initial gdp growth rate : Consider the Harrod-Domar model. Suppose that initially, an African country's capital-output ratio (k) is 5, and the savings rate (s) is 12%. a). What will be the initial GDP growth rate b). Suppose that technological advances cause the capital-out..

Reviews

Write a Review

Econometrics Questions & Answers

  How might a negative base salary be implemented in reality

The value of a successful project is $420,000; the probabilities of success are 1/2 with good supervision and 1/4 without. The manager is risk-neutral, not risk-averse as in the text, so his expected utility equals his expected income minus his di..

  What would the annual interest be

To fund its wars against Napoleon, the British government sold console bonds. There were referred to as "perpetuities" because they would pay 3 every year in perpetuity (forever). If a citizen could purchase a console for 25, what would its annual..

  How much of private domestic investment will be crowded out

Assume the Following IS-LM Model E Expenditure sector Sp = C + I + G + NX C = 110 + (2/3)YD Calculate the equilibrium values of private domestic investment (I), tax revenues (TA), and real money demand (md). How much of private domestic investment (I..

  How might competition change the happy situation

Suppose there are 1,000 small farms in this industry. What will be the output per farm How much revenue will each farm earn If in fact the revenues are sufficiently high to yield handsome profits, how might competition change the happy situation

  What is the equilibrium interest rate

What is the equilibrium interest rate? d. What happens to the interest rate if the money supply increases from 20 to 30? Illustrate your answer graphically. What happens to the interest rate if nominal income increases by 10%?

  How much should the store charge for each rental

A local video store estimates their average customer's demand per year is Q = 7 -2P, and knows the marginal cost of each rental is $0.5. How much should the store charge for each rental if it engages in optimal two part pricing

  Find the firms inverse demand function

the manager of Burger Man - a firm that rents a spot to sell burgers at Easy University. Based on estimates provided by a consultant, burger demand (monthly) and cost functions for meals are Q= 2500-250P and C= 500+ 2Q (MC=2), respectively.

  What is its resulting output and profit

Making dresses is a labor-intensive process. Indeed, theproduction function of a dressmaking firm is well described by theequation Q = L - L2/800, where Q denotes the number ofdresses per week and L is the number of labor hours per week.

  What is the socially optimal number of concerts

The Santa Barbara Bowl (SBB) holds outdoor music events (M), earning $3 of revenue from each concert and with total costs of cM(M) = M2=8 for M concerts. Ursula is a writer who lives right next to the SBB and who sells her novels on the competitiv..

  Forecast the tire sales for february through may

Use simple exponential smoothing with a=0.33 to forecast the tire sales for February through May. Assume that the forecast for January was for 22 sets of tires. Months / Auto Tire Sales Jan / 28 feb / 21 ..

  What is the payment value of a

a loan of $100,000 is being cleared in 120 equal end of time period payments. the interest % corresponding to one time period i=10%. a) what is the payment value of A.what is the balance immediately after the 40th payment is made.

  Write down the unit cost of producing one yard of cloth

How much cloth and food will the economy produce after this increase in its capital supply? Describe how the allocation of machine-hours and work-hours between the cloth and food sectors changes. Do those changes conform with the changes described ..

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