What are capital''s and labor''s shares of income

Reference no: EM131134355

Consider the following production function: Y K.5 ( AN ) .5 , where both the population and the pool of labor are growing at a rate n .07, the capital stock is depreciating at a rate d .03, and A is normalized to 1.

a. What are capital's and labor's shares of income

b. What is the form of this production function?

c. Find the steady-state values of k and y when s .20.

d. At what rate is per capita output growing at the steady state? At what rate is total output growing? What if total factor productivity is increasing at a rate of 2 percent per year ( g .02)?

Reference no: EM131134355

Questions Cloud

Compose a thesis about a dc comics super hero : Compose a persuasive thesis about a DC Comics super-hero (not a villain)- The thesis must connect an aspect (only one) of the character.

What about the decrease in employment during the 2000s : What event can be used to explain the increase in the employment of information technology workers during the 1990s? What about the decrease in employment during the 2000s?

Capital of the emerson electric corporation : (Defining Capital Structure Weights) In August of 2009 the capital of the Emerson Electric Corporation (EMR) (measured in book and market values) appeared as follows:

Does the investment ratio rise during transition : Chart the time path of the adjustment to the new steady state. Does the investment ratio rise during transition? If so, is this effect temporary?

What are capital''s and labor''s shares of income : At what rate is per capita output growing at the steady state? At what rate is total output growing? What if total factor productivity is increasing at a rate of 2 percent per year ( g .02)?

Discuss the adjustment process of the economy : Discuss the adjustment process of the economy, and using Figure 3-5 , show what happens to growth in the short run and in the long run.

The expected return and probability distribution : 1.Compute the expected risk and returns of the portfolio with 50% investment in asset X 2. Calculate the portfolio risk assuming that the correlation of the two assets X and Y are: 1.-1 2.0 3.+1 3.Draw a portfolio opportunity set curve. 4.What are..

The future of the juvenile justice system : You are a juvenile justice consultant creating a proposal that will be presented to the state legislature concerning the future of the juvenile justice system.-Create Microsoft PowerPoint presentation.

Describe the characteristics that inform your perception : Review the information in the Learning Resources, including the leadership styles identified in Chapter 2 of the course text. Bring to mind a leader in your organization or one with which you are familiar. Would you describe his or her style..

User Account

All Pages