Determine long-run effects of this on quantity of capital

Assignment Help Business Economics

Reference no: EM131109488

Suppose that the economy is initially in a steady state and that some of the nation's capital stock is destroyed because of a natural disaster or a war.

a) Please plot what happens to capital per worker and output per worker over time as a result of the natural dasaster( or war).

b) Determine the long-run effects of this on the quantity of capital per worker and on output per worker

Reference no: EM131109488

Questions Cloud

Resolve this problem you are running consumption model : Keynesian consumption model has been criticized on the ground that assumes constant MPC. To resolve this problem you are running the consumption model for US economy as: C = 0 + 1 Y^2 +U a. Explain how this model can remedy the problem of Keynesian c..

How much does zooey owe or receive from the government : Zooey is a single mother of two young children whose husband died in a tragic car accident. She earns $20,000 per year working as a cashier at a grocery store. The government uses a negative income tax system in which Taxes owed = (1/4 of income) - $..

Extremely high incidences of speeding in bathlaham : There are extremely high incidences of speeding in Bathlaham. The fine for speeding is currently $200, and it is estimated that the current probability of a speeding driver being caught and convicted is 5%. Provide an explanation for why speeding is ..

Total social utility will be maximized when marginal dollars : According to a utilitarian, total social utility will be maximized when marginal dollars are distributed to the people with the

Determine long-run effects of this on quantity of capital : Suppose that the economy is initially in a steady state and that some of the nation's capital stock is destroyed because of a natural disaster or a war. Please plot what happens to capital per worker and output per worker over time as a result of the..

Financial panics during the national banking system : Why did the federal bond backing provision and the ability of national banks to hold reserves at other banks encourage nationwide bank runs and financial panics during the National Banking System?

How is this related to healthcare price elasticity : If stakeholders are wrestling with implementing a price increase for some or all of their products in the healthcare industry. What are some factors they should consider? How is this related to healthcare price elasticity?

Depreciation rate increases in the solow growth model : Suppose that the depreciation rate increases in the Solow growth model. Using a diagram, determine the effects of this on the quantity of capital per worker and on output per worker in the steady rate, Explain the economic intuition behind your resul..

Determine the equipment after-tax net present worth : An auto supplier installed new equipment costing $1,050,000. The equipment generated new income averaging $300,000 per year, and its operating costs averaged $48,000 per year. The equipment was depreciated using the MACRS method, assuming a recovery ..

User Account

All Pages