3). Let's consider the Solow Model without technology advancement. Y()=2K(t)^(1/2)*LE)^(1/2) The population growth rate=0.02 Capital accumulation is s*Y(t)-d*K_ s=0.2, d=0.03 d is the capital depreciation rate. In the steady state, please calculate the following measurements. (b)Marginal product of capital (Hint: The first derivative of Y with respect to K) А. 1 В. 1/2 С. 14 D. 1/8 E. 1/16 F. None of the above

3). Let's consider the Solow Model without technology advancement. Y()=2K(t)^(1/2)LE)^(1/2) The population growth rate=0.02 Capital accumulation is sY(t)-d*K_ s=0.2, d=0.03 d is the capital depreciation rate. In the steady state, please calculate the following measurements. (b)Marginal product of capital (Hint: The first derivative of Y with respect to K) А. 1 В. 1/2 С. 14 D. 1/8 E. 1/16 F. None of the above

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Consider a Solow growth model with the formulation investment = 0.192√/K Y = 0.384√/K, Where & is the rate of depreciation, K is level of capital, and Y is the level of output. Adjust the line labeled Depreciation and the function labeled Investment to be consistent with the given model. 8 = Investment, depreciation, and output 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 05 0.0175 0.0 0 20 40 What is the steady-state level of capital? steady-state level of capital: 60 80 100 120 140 160 Capital (K) steady-state output: Depreciation Show Transcribed Text What is the steady-state output? vestment 160 160 200
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question 5
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3). Let's consider the Solow Model without technology advancement. Y(t)=2K(t)^(1/2)*L(t)^(1/2) The population growth rate=0.02 Capital accumulation is s*Y(t)-d*K s=0.2, d=0.03 d is the capital depreciation rate. In the steady state, please calculate the following measurements. (a)Capital per capita A. 16 В. 24 С. 36 D. 48 Е. 64 F. None of the above (b)Marginal product of capital (Hint: The first derivative of Y with respect to K) А. 1 В. 1/2 С. 1/4 D. 1/8 E. 1/16 F. None of the above