Determine the wage of labor, Microeconomics

Assignment Help:

Consider a hypothetical nation, Solowland, which were in the steady state. We consider a constant return to scale production function based on two production factors, labor and capital. The Solowland government recently took policy measures to support family with children. As a result, Solowland undergoes an increase in the population growth rate and it will remain high over time. Complete the table below for the effects (direction only, not size, such as "increased", "decreased", "unchanged", and "ambiguous") of higher population growth rate on

i. the wage of labor, w (hint: it is determined by marginal product of labor)

ii. the rental rate, r (hint: it is determined by marginal product of capital)

iii. capital per worker, k

iv. income per worker, y

v. consumption per worker, c

both initially (the instance of an increase in the growth rate of labor force) and in the new steady state, as compared to the previous steady state (before the increase in the population growth rate). Then, support your answer in words and/or figure. There have been and will be no changes in the savings rates, and depreciation rates. We disregard exogenous technological progress (g=0). (200 words)

 

Initially

New Steady State

i. the wage of labor, w

 

 

ii. the rental rate, r

 

 

iii. capital per worker, k

 

 

iv. income per worker, y

 

 

         v. consumption per worker, c

 

 


Related Discussions:- Determine the wage of labor

Rational self-interest, Discuss the impact of rational self-interest on eac...

Discuss the impact of rational self-interest on each of the following decisions

Determine the change in unemployment - okun''s law, 1. Utilize Okun's law ...

1. Utilize Okun's law to answer the questions below; u t  - u t-1  = -0.4(g yt  - 3%) Assuming u t-1  = 7% a. Calculate the change in u (u t  - u t-1 ) for each of the follo

Economics, #question.what is meant by ppc?illustrate the central problems o...

#question.what is meant by ppc?illustrate the central problems of aneconomy with this curve.

What is extracellular digestion, Extracellular digestion is that in which f...

Extracellular digestion is that in which food breaking into utile molecules that can be internalized by the cell is completed in the extracellular space, i.e., outside the cell. In

Current cropping pattern - crop patterns , Current Cropping Pattern: ...

Current Cropping Pattern: It is evident from these data that foodgrains constitute the most dominant  crop group that is cultivated in India. It is estimated that total croppe

Demand function, The Acme Bakery in the seaside resort town of Malvino sel...

The Acme Bakery in the seaside resort town of Malvino sells freshly baked bread to two categories of consumers: residents of the town and tourists. The weekly demand from touris

#titleELASTICITTY.., CONSIDER THE DEMAND CUVE Q=100-50P DRAW THE DEMAND CUR...

CONSIDER THE DEMAND CUVE Q=100-50P DRAW THE DEMAND CURVE AND INDICATE WHICH PORTION OF THE CURVE IS ELASTIC ,WHICH PORTION IS INELASTIC AND WHICH PORTION IS UNIT ELASTIC

Demand and supply, draw the demand curve,when there is rise in the price of...

draw the demand curve,when there is rise in the price of a product on the demand of the product

Equilibrium firms, how to find total revenue total cost approch in equilibr...

how to find total revenue total cost approch in equilibrium firms

Write Your Message!

Captcha
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