Steady-state level of capital

Assignment Help Microeconomics
Reference no: EM132051447

A small country's aggregate production function is given by Y = K1/2. Its depreciation rate is 5% and its investment rate is 25%. What is its steady-state level of capital?

Reference no: EM132051447

Questions Cloud

What is the companys pretax cost of debt : What is the company's pretax cost of debt? AND If the tax rate is 33 percent, what is the after-tax of debt?
Experiencing population growth : Suppose there are two very similar countries. Both countries have the same population and neither is experiencing population growth
Experiencing population growth : Suppose there are two very similar countries Both countries have the same population and neither is experiencing population growth
Briefly describe the radical and sceptical views on globaliz : What does the existing literature shows about relations between Fdi inflows &income, between FDI inflows and corruption and between Fdi inflows and pollution?
Steady-state level of capital : A small country's aggregate production function is given by Y = K1/2. Its depreciation rate is 5% and its investment rate is 25%.
Opportunity cost of going to florida : If you go to Florida, the airfare, hotel, food and miscellaneous expenses will total about $700. What's your opportunity cost of going to Florida?
Estimate for the population mean to be from : This information is used to calculate an interval estimate for the population mean to be from 40 to 56 rooms.
Understand the marginal revenue function : The demand equation for a manufacturer's product is p = 400 - q2, where p is the price per unit for q units. Help me understand the marginal revenue function.
Calculate the equilibrium level of income : Calculate the equilibrium level of income. Calculate the level of Savings at the equilibrium level of Income.

Reviews

Write a Review

Microeconomics Questions & Answers

  Discover the real interest rate that clears the goods market

An economy has full-employment output, Yn, of 6000. Government purchases, G, are 1200. Consumption is C = 3600-2000r + 0.10Y and investment is I = 12-400r, Y is output and r is the real interest rate. Discover an equation relating national saving, S,..

  What action might federal govt take to give economy boost

The latest economic news was not very positive. Unemployment rates were higher than expected, consumer confidence had fallen, and companies were reporting layoffs were in order. The Federal Reserve chairman acknowledged the economy was in a recess..

  What is the meaning of a derived demand

The demand for labor is said to be a "derived" demand. What is the meaning of a derived demand? How does this concept help to determine the demand for labor?

  Demand for labor is said to be a derived demand

The demand for labor is said to be a "derived" demand. What is the meaning of a derived demand? How does this concept help to determine the demand for labor?

  Explain why the need to have a high aggregate demand

Explain why the need to have both a high aggregate demand and a high profit rate for firms to be profitable are two requirements that may stand in contradiction to each other, which in turn may lead to problems in the accumulation of capital and ev..

  Assume we used income method to find small countrys gdp why

suppose small country has 4 households and 3 businesses. each of the 4 households purchased 20000 in food and gasoline

  Estimate the slope and intercept of model

What is the interpretation of β1, the estimated coefficient on cigs that you calculated with STATA - In a study relating college grade point average to time spent in various activities, you distribute a survey to several students. The students are..

  Write an expression for the future value of the stock

Write an expression for the future value of the stock of external wealth in period N (WN). This should be written as a function of the economy's trade balance.

  Is the difference economically large

The variable re78 is earnings from 1978, measured in thousands of 1982 dollars. Find the averages of re78 for the sample of men receiving job training and the sample not receiving job training. Is the difference economically large?

  Which in turn obviously depends on investment expenditure

The natural rate of employment depends on the stock of capital, which in turn obviously depends on investment expenditure. The natural rate also depends on technical progress, which is also likely to depend on levels of investment and research and..

  Complete demand analysis providing a rationale for selection

Report the demographic and independent variables that are relevant to complete a demand analysis providing a rationale for the selection of the variables.

  How is total risk measured-what is a portfolio

How is total risk measured? What is a portfolio? Why is the standard deviation of a portfolio less than the average standard deviation of the assets in the portfolio? What is systematic risk? What are the other names for it? What is unsystematic risk..

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