Labor force growth rate and a depreciation rate

Reference no: EM13687644

Presume that both Country A and Country B have the same production function: Y/L = 6*(K/L)0.5. But, Country A has a capital-to-labor ratio that is initially twice as big as Country B. In addition, Country A has a 10% saving rate, a 10% labor force growth rate and a 5% depreciation rate while Country B has a 20% saving rate, a 10% labor force growth rate and a 20% depreciation rate.

1. Steady state output-per-worker in Country A is _____.

2. The steady state capital-to-labor ratio in Country B is _____.

3. The steady state capital-to-labor ratio in Country A is _____.

4. The steady state capital-to-labor ratio in Country B is _____.

Reference no: EM13687644

Questions Cloud

Manufacturers suggested retail price : A light duty pickup truck has a manufacturer's suggested retail price (MSRP) of $14,000 on its window. After haggling with the salesperson for several days, the prospective buyer is offered the following deal:

Discuss the organizational characteristics : Discuss the organizational characteristics that arise during the four (4) stages of organizational growth. Comparing the characteristics of a company in Stage I with those of the same company in Stage IV (after years of steady growth), is anyth..

Will both the equilibrium price and quantity would decrease : What would happen to the equilibrium price and quantity of lattes if the cost to produce steamed milk, which is used to make lattes, increased, and scientists discovered that lattes cause heart attacks? Will both the equilibrium price and quantity wo..

The entrepreneurial process can be very rewarding : The entrepreneurial process can be very rewarding for entrepreneurs as well as for customers and investors.

Labor force growth rate and a depreciation rate : Presume that both Country A and Country B have the same production function: Y/L = 6*(K/L)0.5. But, Country A has a capital-to-labor ratio that is initially twice as big as Country B. In addition, Country A has a 10% saving rate, a 10% labor force gr..

Creating blue oceans for apple iphone : Analyze the first 3 paths of framework to creating blue oceans for Apple iPhone. These have to be new strategies not ones they have already implemented

Double entry door''s suppliers maintained very stable prices : Double Entry Door's suppliers maintained very stable prices

The parlor and the cub scout pack case studies : The Parlor and The Cub Scout Pack Case Studies

What is the value of the steady state capital-to-labor ratio : Presume that the economy has the following production function: Y/L = 8*(K/L) 0.5. Further suppose that s = 0.2, gL = 0.3, and Î´ = 0.1. What is the value of the steady state capital-to-labor ratio?

User Account

All Pages