Effective worker has converged to the steady state level

Assignment Help Business Economics

Reference no: EM13998939

Consider a country where capital per effective worker has converged to the steady state level. The government is concerned that the rate of growth is too low and is studying two policies in order to improve economic performance. Policy 1 encourages people to save more (s’>s), which leads to higher investment. Policy 2 encourages the creation of high tech firms which are associated with greater rates of technological innovation (gA’>gA). 5. Does following policy 1 lead to higher level of output per worker than the alternative scenario of doing nothing? Explain why or why not. 6. On a graph with time on the horizontal axis and output per worker on the vertical axis, show the path for yt over time. Suppose that from t=0 to t=t* the country follows the earlier path and at t * policy 1 starts taking effect. 7. Does following policy 2 lead to higher level of output per worker than the alternative scenario of doing nothing? Explain why or why not. 8. On a graph with time on the horizontal axis and output per worker on the vertical axis, show the path for yt over time. Suppose that from t=0 to t=t* the country follows the earlier path and at t * policy 2 starts taking effect. 9. In the long run does policy 1 or policy 2 lead to higher output per worker? Explain.

Reference no: EM13998939

Questions Cloud

What flow angle will the flow become just sonic down stream : At what flow angle will the flow become just sonic downstream of the nozzles of a high pressure turbine? The nozzles discharge into an annulus which has a shroud diameter of 250 mm and hub to the shroud diameter ratio is 0.80. The stagnation press..

What is the density of the sphere : A solid, homogeneous sphere floats with half its volume immersed in the mercury and the other half in the oil. What is the density of the sphere?

Describe the makeup of food service industry : Describe the makeup of food service industry in canada. What is the size in sales dollar of the food service industry in canada? How had the industry been trending over the last several years? Explain with numbers and cited facts please give the refe..

Do need to be concerned about the thermal contact resistance : A wall consists of two layers of insulation pressed against each other. Do we need to be concerned about the thermal contact resistance at the interface in a heat transfer analysis or can we just ignore it?

Effective worker has converged to the steady state level : Consider a country where capital per effective worker has converged to the steady state level. The government is concerned that the rate of growth is too low and is studying two policies in order to improve economic performance. Policy 1 encourages p..

What are the components of the force exerted by the beam : What is the tension in the rope? In terms of m, g, d, L, and θ, what are the components of the force exerted by the beam on the wall?

Express boundary condition on inner surface of container : Consider a spherical container of inner radius r1, outer radius r2, and thermal conductivity k. Express the boundary condition on the inner surface of the container for steady onedimensional conduction for the following cases: (a) specified tempe..

Supplier contract calls for a key dimension : A supplier contract calls for a key dimension of a part to be between 1.96 and 2.04 centimetres. The supplier has determined that the standard deviation of its process, which is normally distributed, is .04 centimetre.

Negotiating a contract to sell plywood overseas : A large wood products company is negotiating a contract to sell plywood overseas. The fixed cost that can be allocated to the production of plywood is $800,000 per month. For this situation, determine the optimal monthly sales volume for this product..

User Account

All Pages