Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Consider an economy with the following production function: Assignment 3 Y = AK.5L.5 The labour force is constant. The rate of depreciation is δ = .1, the savings rate is s = .3. a. Has this production function constant returns to scale? Why? b. Write the production function in per worker variables. c. Does the per worker production function have diminishing marginal returns to capital? Why? d. Write the fundamental Solow equation in per worker variables. e. Depict the steady state of this economy. f. What are the growth rates of per worker output and capital in steady state? g. Calculate the steady state level of capital, output, consumption and savings. h. Redraw the initial equilibrium and show what happens when the savings rate increases. Do the growth rates change? i. Redraw the initial equilibrium and show what happens when there is a one time increase in population. Do the growth rates change? j. Redraw the initial equilibrium and show what happens when there is a one time innovation that increases productivity. Do the growth rates change? k. Redraw the initial equilibrium and show what happens when there is constant productivity growth. Do the growth rates change?
Suppose that County A has a money demand function given by Md= 50 + 2Y - 5r, while Country B has a money demand function given by Md = 50 + 2Y -25r. From this, we can conclude that
Suppose, Worker 1 has a reservation price of 41 cents; worker 2’s reservation price is 42 cents; worker 3’s reservation price is 43 cents, and so on. There are 150 jobs in firms without air purification systems, and this number is fixed. Thus, the de..
Westinghouse and General Electric are competing on the newest version of clothes washer and dryer combinations.
From 1990 to 2004, the Celtic Tiger, Ireland, experienced annual growth in RGDP of 6.4% while the capital stock grew at 4.8% per year and employment grew at 2% annually. Labor’s share of Income was 60%. What was the growth rate of Total Factor Produc..
Suppose banks keep no excess reserve and no individuals or firms hold on to cash. If someone suddenly discovers $12 million in buried treasure and deposits it in a bank, elucidate what will happen to the money supply if the required reserve is 10 ..
q1. given the choice between a1000 p 1.0 and b1200 p0.90 kathy prefers gamble a. does this mean she is risk averse?
You have just won $100,000 lottery. Use a diagram showing the tradeoff between leisure ( on x-axis) and goods (y-axis) for the following: Show how the lottery winning affect your budget line
Assume the market for a commodity is described by the demand and supply functions. Determine the equilibrium price and quantity in this market.
Share markets all over the world often increase or decrease together. What does a rise in the stock market indicate to you about the level of current and expected growth in the world economy?
During the financial crisis of 2007-2008, the governor of the Bank of Canada expressed concern that the commercial banks were "hoarding" cash rather than extending a more appropriate volume of loans. Why might the banks do this, and what is the impli..
According to the classical model, to ensure that the economy reaches its potential output level, the government
Nevertheless your total unit sales have increased over this period. Assuming rational buyers and no deceptive advertising, how can you account for this.
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd