Solow growth model by means of technology

Assignment Help Business Economics

Reference no: EM136763

Q. Reflect on the Solow Growth Model by means of technology given by Y = zF(K, N) = K^(1/2)N^(1/2), its savings rate is 0.2 moreover its depreciation rate is 0.1. Together the population growth as well as the technological growth is 0. Notify that the lower case
letters denote per capita variables e.g. y=Y/N).

(a) Elucidate the steady state values of c, y, k and i?

(b) Elucidate the values of y and k only if economy operates at "Golden Rule" level of capital accumulation?

(c) Elucidate the saving rate which you've to impose also the level of c? Envision that you want to drive this country in the "Golden Rule" levels of k and y.

(d) Elucidate what would be the immediate and long run effects on c, k, and y? Explain by drawing the path of these variables. Consider that you impose the new saving rate.

Reference no: EM136763

Questions Cloud

Michael porters five-force model : Why does Michael Porter admonish companies will not change his competitive positioning any more regularly than once every four or five years.

Monopolistic competition oligopoly and monopoly. : In economic terms, when the wage rate increases we sometimes see the number of hours worked by individuals decrease now.

Strategic advice in todays economy : In your opinion, are the resources you devote to your education a form of consumption or a form of investment.

Firms cost structure : From what you know about these firms' cost structure, what is the highest possible price per unit that could be existing as the market price in the long run equilibrium.

Solow growth model by means of technology : Elucidate what would be the immediate and long run effects on c, k, and y. Explain by drawing the path of these variables. Consider that you impose the new saving rate.

Solow growth model : Elucidate what would be the immediate and long run effects on c, k, and y. Explain by drawing the path of these variables. Consider that you impose the new saving rate.

Sales change if the company increases computer price : How much will computers sales change by if the company increases computer price by $100 from $1,000 to $1,100.

Tit-for-tat strategy : Illustrate the way in which market forces shape the organizational responses using a range of examples.

Describe maximizing utility : How many DVD's will she have to sell to keep the store open for an extra hour to make profit, if each DVD is $12.

User Account

All Pages