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= 0.1), 2. Suppose that the depreciation rate is 10 percent per year (8 = el tsda boinoq Tag O< sti edd Ja awong etohow that the savings rate is 25 percent (o = 0.25), and that the production xi ei baal to tos sdT olderota ton at suguo bas leiqsa leoievilo on ai function is of the Cobb-Douglas form, that is, Y; = AK¢L;-ª, where 7admn baxd s ai Toedw a boirsq lls 1ol T T,ai Jedlt omit o Yt, Kt, and Lt denote, respectively, output, the stock of capital, and %3D odT3(n+1): %3D 1970 population in period t, and a and A are constant parameters. Assume that a = 0.3. Let y* and y denote the steady-state output per capita %3D oirog doo ow oguqo bail S. associated withn and n', respectively. Calculate the percentage in- i crease in long-run output per capita caused by a permanent fall in the population growth rate from n to n', that is, calculate (y*/y*-1) × 100.

= 0.1), 2. Suppose that the depreciation rate is 10 percent per year (8 = el tsda boinoq Tag O< sti edd Ja awong etohow that the savings rate is 25 percent (o = 0.25), and that the production xi ei baal to tos sdT olderota ton at suguo bas leiqsa leoievilo on ai function is of the Cobb-Douglas form, that is, Y; = AK¢L;-ª, where 7admn baxd s ai Toedw a boirsq lls 1ol T T,ai Jedlt omit o Yt, Kt, and Lt denote, respectively, output, the stock of capital, and %3D odT3(n+1): %3D 1970 population in period t, and a and A are constant parameters. Assume that a = 0.3. Let y* and y denote the steady-state output per capita %3D oirog doo ow oguqo bail S. associated withn and n', respectively. Calculate the percentage in- i crease in long-run output per capita caused by a permanent fall in the population growth rate from n to n', that is, calculate (y*/y*-1) × 100.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Please answer question 2 & 3.
Intermediate Macroeconomics, Chapter 4 nel, 127 4.4 Exercisessbi cod hasdioeoolslngo) S. seea Yei ted loo-ddo i noonu noitouh ng Exercise 4.1 (The U.S. Population Slowdown and Income Per Capita). noitaluqoq bnn losig) U.S. Population in Selected Years o bns boirsq ai fsbom wolo2 adt o Year ToMood o (n or 1870 anbron ber boaont 1871 Population in millions ottslogobiw 40.24 tadn toq lesiqes 41.10 S c 2015 abon hec 321.08 wolod ards lo eoteteng sdi lo eod ai A bas A paiepa sige 323.30 2016 V ent por yo lssa Jobom the al output 1. Using the information provided in the table, calculate the population bojon growth rate between 1870 and 1871 and between 2015 and 2016. Denote these two numbers n and n', respectively.sTbalonab bast bas lo Todmun odt tadd osogqueI>o > 0 dtiw T = (.T) s9 0.1), 2. Suppose that the depreciation rate is 10 percent per year (8 = 0odT (n+I)=14.e adt boinoq roq 0<od odd Ja awong atlhow that the savings rate is 25 percent (o = 0.25), and that the production boxit ai basl lo tmuos sdT .olderota ton at dugdro bas letiqsa leievilo on ai function is of the Cobb-Douglas form, that is, Y = AK L-a, where 19dmn baxt s ai T oodw boirsq lle 1ol T-T,ai terld omit vo Yt, Kt, and Lt denote, respectively, output, the stock of capital, and population in period t, and a and A are constant parameters. Assume 0.3. Let y* and y* denote the steady-state output per capita boirog daso how teg juquo ba that a = associated withn and n', respectively. Calculate the percentage in- oVili crease in long-run output per capita caused by a permanent fall in the population growth rate from n to n', that is, calculate (y*/y* -1) × 100. 3. Provide intuition. boioq lone ni uoilqauanoo bnilA
Transcribed Image Text:Intermediate Macroeconomics, Chapter 4 nel, 127 4.4 Exercisessbi cod hasdioeoolslngo) S. seea Yei ted loo-ddo i noonu noitouh ng Exercise 4.1 (The U.S. Population Slowdown and Income Per Capita). noitaluqoq bnn losig) U.S. Population in Selected Years o bns boirsq ai fsbom wolo2 adt o Year ToMood o (n or 1870 anbron ber boaont 1871 Population in millions ottslogobiw 40.24 tadn toq lesiqes 41.10 S c 2015 abon hec 321.08 wolod ards lo eoteteng sdi lo eod ai A bas A paiepa sige 323.30 2016 V ent por yo lssa Jobom the al output 1. Using the information provided in the table, calculate the population bojon growth rate between 1870 and 1871 and between 2015 and 2016. Denote these two numbers n and n', respectively.sTbalonab bast bas lo Todmun odt tadd osogqueI>o > 0 dtiw T = (.T) s9 0.1), 2. Suppose that the depreciation rate is 10 percent per year (8 = 0odT (n+I)=14.e adt boinoq roq 0<od odd Ja awong atlhow that the savings rate is 25 percent (o = 0.25), and that the production boxit ai basl lo tmuos sdT .olderota ton at dugdro bas letiqsa leievilo on ai function is of the Cobb-Douglas form, that is, Y = AK L-a, where 19dmn baxt s ai T oodw boirsq lle 1ol T-T,ai terld omit vo Yt, Kt, and Lt denote, respectively, output, the stock of capital, and population in period t, and a and A are constant parameters. Assume 0.3. Let y* and y* denote the steady-state output per capita boirog daso how teg juquo ba that a = associated withn and n', respectively. Calculate the percentage in- oVili crease in long-run output per capita caused by a permanent fall in the population growth rate from n to n', that is, calculate (y*/y* -1) × 100. 3. Provide intuition. boioq lone ni uoilqauanoo bnilA
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