What are the steady state solutions for wages growth

Reference no: EM13192624

Imagine an economy with a standard Cobb-Douglas production function, population growth of 2%, 1% total productivity growth, a savings ratio of 10% and a profit share of 20%. Assume that machines depreciate by 5% per annum.

What are the steady state solutions for:
1) level of GDP per effective worker?
2) growth of GDP per actual worker?
3) level of consumption per effective worker?
4) wages growth?
5) the user cost of capital?
6) the real interest rate?
7) explain whether this economy is following the Golden Rule.

Reference no: EM13192624

Questions Cloud

How many children attended : The Family Arts Center charges $21 for adults, $13 for senior citizens, and $7 for children under 12 for their live performances on Sunday afternoon. This past Sunday, the paid revenue was $9833 for 745 tickets sold. There were 47 more children th..

How much was invested at each rate : $5900 is invested, part of it at 11% and part of it at 7%. for a certain year, the total yield is $537.00. How much was invested at each rate?

Find the number of hits for each player : two minor league baseball players got a total of 216 hits. Washington had 2 more hits than Sanchez. Find the number of hits for each player?

Compute the ph for each of the cases in the titration : Calculate the pH for each of the following cases in the titration of 50.0 mL of 0.210 M HClO(aq) with 0.210 M KOH(aq). (a) before addition of any KOH (b) after addition of 25.0 mL of KOH (c) after addition of 40.0 mL of KOH

What are the steady state solutions for wages growth : Imagine an economy with a standard Cobb-Douglas production function, population growth of 2%, 1% total productivity growth, a savings ratio of 10% and a profit share of 20%. Assume that machines depreciate by 5% per annum.

What is the probability about the keyboard : What is the probability that the keyboard you bought was manufactured in Factory A or Factory B? Show your work.

Describes the movement of inventory : Create a decision table that describes the movement of inventory and draw a decision tree that describes the merchandise inventory management process.

State percentage does a dilute aqueous solution expand : By what percentage does a dilute aqueous solution expand when heated form 15 degrees C to 25 degrees C? If a 0.5000 M solution is prepared at 15 degrees C,

What is the probability that he will make both shots : kareem stepped to the free throw line for two shots. If the probability of making each shot is 3/4, what is the probability that he will make both shots?

User Account

All Pages