1/3 2/3if A,2,1L= L = 4,5 =0.2, and d = 0.05:Given a production function Y,AK=(a)(b)Calculate the steady-state level of capital and output. Show your work.Does this production function exhibit constant returns to scale or does it exhibit diminishing marginalreturns? Explain, and define the difference between these two concepts.

This is my work: Part (a) Calculate the steady-state level of capital and output Given parameters:…

Answered: 1/3 2/3 if A , 2,1 L = L = 4,5 = 0.2,…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Assume that digital revolution popularizes the use of artificial intelligence (computers) in the workplace. The production function becomes: Y = 0.25 K(2/5)(ACN)(3/5) where C stands for the number of computers.: a) Use growth accounting to predict the increase in total output in response to an increase in the number of computers by 10 percent. b) The nominal interest rate on government bonds equals 9 percent and inflation equals percent. The rate of GDP growth is equal to the result obtained in (a). Use the debt dynamics equation and graph to explain whether or not the level of public debt in percent of GDP can be stabilized if the government runs a primary deficit. c) Use the neoclassical investment model (equation and graphs) to assess the impact of a decrease in the number of computers on investment (in traditional physical capital K).
A CES production function with physical and human capital Consider the CES production function in terms of physical capital, K, and human capital, H: where 0 a. Set up the Hamiltonian and find the first-order conditions. b. What is the optimal relation between K and H? Substitute this relation into the given production function to get a relation between Y and K. What does this “reduced-form” production function look like? c. What is the steady-state value of the ratio of physical to human capital, (K/H)∗? d. Describe the behavior of the economy over time if the initial condition is such that K(0)/H(0)? e. Suppose that the inequality restrictions IK ≥ 0 and IH ≥ 0 apply. How do these constraints affect the dynamics if the economy begins with K(0)/H(0)∗?
What is the MRTS for the following production function: q = MRTS is different for different values of K and L. Can you give an example of a proper production function (strictly Increasing in both K and L), for which the MRTS is always equal to -2021 regardless of the values of K and L In(KL) + K'3 (l.e., q-in(KL)+K^(3/2]). You could see that this
0.5 0.5 Given a production function: Y = AK N If output grows at 5%, capital grows at 2% and the number of workers grows at 4%, then technology (or total factor productivity) grows at % ? (Answer in integer only, no decimal place.) Your Answer: Answer Given a production function: Y = AK0.5 N0.5. If output grows at 5%, capital grows at 2% and the number of workers grows at 4%, then technology (or total factor productivity) grows at %? (Answer in integer only, no decimal place.) Your Answer: Answer
Constant returns to scale is the point on a production function where increasing inputs will no longer increase output. True False 00
The aggregate production function is Y = 5KL. If there are 18 units of capital and 50 units of labor, aggregate output is ________________.
Which among these production functions exhibit increasing returns to scale? (Clue: you should scale each input by a factor strictly greater than 1) Select one: a. F(K,L) = 12K + 8L b. F (K,L) = K^2+L^2 c. F (K,L) = K+4L^2 d. F (K,L) = K/L (ii) Suppose that the number of people employed is equal to 160.0 million. The number of people unemployed and looking for a job is 58 million. The number of people not in the labor force is 60 million. How much is the adult population participation rate? Select one: a. 78.4%. b. 26.6%. c. 73.75%. d. 37.5%. (iii) Which one is not considered as money Select one: a. Gold coins b. A subway token in a subway system c. Cigarettes in prisoner of war camps d. A cheque %3D
> > Question 3 Which of the following production technology exhibits constant returns to scale? I. f(K, L)=K0.25 L0.75 II. f(K, L) = K0.75 0.75 III. f(K, L) = K0.25 0.25 Only (i) Only (ii) Only (iii) All of them. Question 4 Which of the following production technology exhibits increasing returns to scale? I. f(K, L) = K0.25 L0.75 II. f(K, L) = K0.75 0.75 III. f(K, L) = K0.25 0.25 Only (i) Only (ii) Only (iii) O All of them.
Suppose that the production function is given by Y=AK0.4N0.6. What is the percentage change in output if both capital and labor rise by 42%? Write the answer in percent terms with up to two decimals (e.g., 10.22 for 10.22%, or 2.33 for 2.33%).
Given the following aggregate production function: Y = K0.25 (AL) 0.75, where technology A grows at a fixed rate: = g> 0 (a) Obtain the marginal product of capital algebraically, also discussing the second derivative. (b) Transform the production function into efficiency-worker terms, showing how =ỹ depends AL on =k. K AL
not use ai please
Im so confused what I am doing wrong I need help.

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