Drive the economy to the golden rule steady-state

Assignment Help Business Economics

Reference no: EM131071673

An economy is described by the following equations: Yt(subscript) = K0.5t(subscript) L0.5, s = 0.2, δ = 0.1 (no population growth).

(a) Find the steady state values for k,y,c,i (all expressed in per-capita form)

(b) What are the values of k and y if the economy operates at the Golden Rule level of capital accumulation?

(c) Imagine that you want to drive the economy to the Golden Rule steady-state. What is the saving rate you need to impose? What would be the level of c?

(d) Assuming that you impose the new saving rate, what would be the immediate and long-run effects on c,k, and y (i.e. draw the path of these variables over time).

Reference no: EM131071673

Questions Cloud

Employee for the garnishment orders : Shortly after this individual begins work, the company receives a "garnishment order." This court order specifies that a certain percentage of the employee's salary must be deducted each paycheck in order to satisfy a money judgment that has been..

How the resulting price and extraction paths change : When total extraction volumes are limited by an outside entity, such as OPEC, what happens to the price of that resource? Graphically illustrate how the resulting price and extraction paths change.

What is the purpose of interruptible load programs : Why might the electricity industry offer to pay large consumers of electricity to stop using electricity during periods of high demand? Put another way, what is the purpose of interruptible load programs?

To identify how an element functions : The quote will derive from a section of the assigned reading that the student considers interesting, unusual or challenging. In choosing a quote, it is important to consider whether or not a passage is rich enough to enable sustained analysis.

Drive the economy to the golden rule steady-state : An economy is described by the following equations: Yt(subscript) = K0.5t(subscript) L0.5, s = 0.2, δ = 0.1 (no population growth). Find the steady state values for k,y,c,i (all expressed in per-capita form) What are the values of k and y if the econ..

Purpose of this orientation video : 1) What are the elements of orientation covered in this video? 2) What is the purpose of this orientation video?

What particular tort or torts can your client claim : Draft a legal memorandum in which you discuss the likelihood of a successfully recovery by your client. - What particular tort or torts can your client claim and What are the elements of the legal claim that must be proven.

Understand the perspectives : Discuss how frames of reference (hint: unitarist; pluralist; radical) help us to understand the perspectives of one of the three key stakeholders (hint: managers, unions,employees).

Aspects of eileen fisher way resemble high performance : 1. Identify the ways in which Eileen Fidher, Inc. engages its employees 2. What aspects of Eileen Fisher way resemble high performance work system? 3. Can "eco-consciousness" effectively be incorporated into high-performance work systems?

User Account

All Pages