15.Consider a Solow-Swan model with saving rate s = 0.4, labour force growth gL = 0.05, constant productivity A = 1, and depreciation 86 = 0.05. If output per worker is y = Y/L = 200 and capital per worker is k = K/L = 800, which of the following is true? Group of answer choices 1.Effective depreciation per worker is 80, saving per worker is 60 and k will decrease towards the steady state 2.Effective depreciation per worker is 80, saving per worker is 80 and k is at the steady state 3.Effective depreciation per worker is 60, saving per worker is 80 and k will decrease towards the steady state 4.Effective depreciation per worker is 60, saving per worker is 80 and k will increase towards the steady state

15.Consider a Solow-Swan model with saving rate s = 0.4, labour force growth gL = 0.05, constant productivity A = 1, and depreciation 86 = 0.05. If output per worker is y = Y/L = 200 and capital per worker is k = K/L = 800, which of the following is true? Group of answer choices 1.Effective depreciation per worker is 80, saving per worker is 60 and k will decrease towards the steady state 2.Effective depreciation per worker is 80, saving per worker is 80 and k is at the steady state 3.Effective depreciation per worker is 60, saving per worker is 80 and k will decrease towards the steady state 4.Effective depreciation per worker is 60, saving per worker is 80 and k will increase towards the steady state

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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10. In the steady state in a Solow model including effective/productive workers, the growth of output per effective worker is: G 0 N+G Depreciation rate Savings rate
Question 50 Consider the fictional countries of Atlantis and Xanadu. Both countries share the same technology and have identical rates of depreciation. Both countries also have the same saving rate, s, and have reached their steady-state capital stock per worker Atlantis has a higher rate of population growth. Answer the following (a) With a carefully drawn diagram with output per worker, investment per worker, consumption per worker, and depreciation per worker, clearly indicate the steady- state capital per worker for both countries. Briefly explain why you have drawn capital at the level you have for both countries (b) Which country has the higher level of steady-state consumption per worker? Explain (c) Suppose that Xanadu's population growth rate suddenly increases to that of Atlantis at time to. If Xanadu maintains its saving rate at the initial level, how does consumption per worker immediately after the population growth rate increase compare to the level of consumption per…
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Pls help with below homework.
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Given a saving rate of 5%, a depreciation rate of 1%, and a production function in which y = k0.5where y is output per worker and k is capital per worker, calculate the steady state values fori. capital per worker, ii. output per worker, iii. consumption per worker
9. Suppose there is no population or technological growth. Define k as the capital-to-labor ratio. If the per worker production function is given by y = ¹/2, the saving ratio is 0.3, and the depreciation rate is 0.1, then the steady state capital per worker ratio is (a) 1 (b) 2 (c) 4 (d) 6 9
Consider the Swan-Solow model of economic growth. [Hint: Question (e) below goes beyond the subject matter discussed in the lecture and requires you to think independently.] c) Draw a typical Depreciation curve into the diagram. Briefly explain how you came up with the curve and what you need to know to exactly pin it down.
Q1. In the Solow model, suppose s=0.3, delta(depreciation)=0.05, output f(k) = sqrt of k. The economy starts at time t=0 with k=1. Suppose there is expropriation by the government and the entrepreneur only gets to keep 30% out its output. a) What is the capital per worker at time t=1? b) How does this compare with the case of no expropriation?
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for only answer part d.