Find what is the saving rate that is consistent

Assignment Help Econometrics
Reference no: EM13245377

If the Canadian production function is Cobb-Douglas with capital's share in total output 0.3, output growth is 3 percent per year, depreciation is 4 percent per year, and the capital-output ratio is 2.5, what is the saving rate that is consistent with the steady state?

Reference no: EM13245377

Questions Cloud

Discuss the dangers of a high debt to gdp ratio : Assume the country is in a budget deficit and carrying a very large debt. Discuss the dangers of a high debt to GDP ratio and a growing budget deficit. Would this change any policy changes you discussed in Part 1?
When economy will be at the golden rule steady state : If the marginal product of capital net of depreciation equals 10 percent and the rate of population growth equals 2 percent what must be the rate of technological progress for the economy to be at the Golden Rule steady state
What speed does he need at the bottom : A 54.0kg skateboarder wants to just make it to the upper edge of a "quarter pipe," a track that is one-quarter of a circle with a radius of 3.90m
Do you find that in recent years that housing has became : Do you find that in recent years that housing has became more difficult for consumers to achieve?
Find what is the saving rate that is consistent : If the Canadian production function is Cobb-Douglas with capital's share in total output 0.3, output growth is 3 percent per year, depreciation is 4 percent per year, and the capital-output ratio is 2.5,
Data and multiple regression analysis to predict corn : International Agricultural Producers publishes annual data on various selected farm products. Shown above are the unit productions figures (in millions of bushels) for three farm products for 10 years.
Analyze the challenges that companies face : Analyze the challenges that companies face in entering global markets. Identify the potential impact to capital budgets in making the decision to move into a global market.
Explain long-run adjustments that will create equilibrium : A perfectly competitive industry is initially in a short-run equilibrium in which all firms are earning zero economic profits but are operating below their minimum efficient scale. Explain the long-run adjustments that will create equilibrium
Buying electricity off the freewheeling grid at one quarter : Buying electricity off the freewheeling grid at one quarter 'til the hour for delivery on the hour illustrates: a. relational contracts with distributors b. vertical requirements contracts c.

Reviews

Write a Review

Econometrics Questions & Answers

  Determine the barretts enterprise value

A major pension fund is interested in purchasing Barrett's stock. The pension fund manager has estimated Barrett's free cash flows for the next four years as follows: $3 million, $6 million, $10 million, and $15 million.

  Determine whether the two inequalities above are consistent

US Output: 100 units Labor: 20 workers Wages: $3 Exports:$90 UK Output: 50 units Labor: 20 workers Wages:$2 Exports: $45 1.) Compare the relative productivity with the wage ratio 2.) Then calculate the ratio of the two exports. 3.) Determine whether ..

  To compound monthly which options is more favorable

A local car dealer is advertising a 24 month lease of a sport utility vehicle for 520 payable at the beginning of each month. the lease requires a 2500 down payment plus a 500 refundable security deposit that is refunded at the end of the 24 month..

  Find the marginal product where diminishing returns sets in

a) Find the Marginal Product and use this information to determine where diminishing returns sets in. b) If labor costs $684 per unit, find the Marginal cost at Q = 30, Q= 50 and Q = 69. Round any decimal answers to 1 place. Explain how these answ..

  What is the average and marginal cost of gumball production

Suppose that the Acme Gumball Company has a fixed proportions production function that requires it to use two gumball presses and one worker to produce 1000 gumballs per hour. The cost function is TC = q(2v+w), where q is the output of gumballs per..

  What would have been the average growth rate

What term would economists use to describe what happened in year 3  Expansion OR Recession If the growth rate in year 3 had been a positive 5 percent rather than a negative 2 percent, what would have been the average growth rate

  What is the slope of linear regression

If the t ratio for the slope of a simple linear regression equation is equal to 1.614 and the critical values of the t distribution at the 1% and 5% levels of significance, respectively are 3.499 and 2.365, then what is the slope

  Illstrate the shape of a typical indifference curve

a consumer has preferences between two goods, hamburgers(H),and milkshakes(m), his perference over the two goods are represented by the utility function U= H^1/2+M^1/2, for this utility function MUH=1/(2H^1/2) and MUM=1/(2M^1/2)

  Estimate annual energy and maintenance cost

Two alternate schemes are proposed for heating this building. "Bottled gas" can be used for floor type furnaces, or electric radiant panels can be installed in the walls and ceiling. It is estimated that the building will be used for 5 years befor..

  Calculate the elasticity of supply for salt

Suppose that the price of salt rises from 15 cents to 17 cents a kilogram. The quantity demanded decreases from 525 kilograms to 475 kilograms per month, and the quantity supplied increases from 525 kilograms to 600 kilograms per month.

  Compute gdp-ndp and ni

Using the following national income accounting data, compute (a) GDP, (b) NDP, (c) NI. All figures are in billions. Compensation of employees U.S. exports of goods and services Consumption of fixed capital (depreciation) Government purchases Taxes on..

  Determine the buyers optimal acceptance strategy

Consider a bilateral bargaining situation, in which both the seller's cost c and the buyer's valuation v are distributed uniformly on [0, 1]. The buyer and seller play a trading game, in which the rules are as follows.

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