3. Y₁ = 3k+0.5St = 0.3Ytd = 0.1n = 0.05What are the steady-state values of the capital-labor ratio k, output per worker y, andconsumption per worker?

The objective of the question is to find the steady-state values of the capital-labor ratio (k),…

Answered: 3. Y₁ = 3k+0.5 St = 0.3Yt d = 0.1 n =…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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answer questions a and b please
Assume the economy is initially in its balanced growth state. Suppose policymakers pursue policies that would increase the saving rate to s1=0.3. Draw a carefully-labelled diagram to illustrate the effect of the change in the saving rate on the economy in the long run. Explain the effect of the change in saving rate on steady-state capital per effective worker and steady-state consumption per effective worker?
question 5
Suppose that the populist leader of our imaginary country increases the savings rate from 13% to 15%, i.e., (s = 0.15), what is the new steady state level of capital per worker? [Note: Assume that the other parameters n and d remain unchanged.]
Suppose Westeros produces output according to the production function: Y = √K The fraction of output that is saved and invested in new capital is 20%. The depreciation rate is 5%. Use this information to answer the following questions. Macmillan Learning a. What is the steady-state amount of capital (K) in Westeros? b. What is the steady-state amount of output (Y*) in Westeros? c. If Westeros had started out with 25 units of capital, what would the Solow model predict would happen to its output in the long run? O It will decrease, since that is above its steady state level of output of 4 It will decrease, since that is above its steady state level of output of 16 It will increase, since that is below its steady state level of output of 16 It will increase, since that is above its steady state level of output of 41 It will remain at 25, since that is its steady state level of output
Use the following table to find the steady-state values of the capital-labor ratio and output if the per-worker production function is 03 Yt=2k₁ 3 8 n A Saving rate Depreciation rate Population growth rate Technology 0.47 0.03 0.02 2 k* = Steady-state capital-labor ratio= (Round your response to two decimal places.) y* = Steady-state output = (Round your response to two decimal places.)
Shade the entire area that represents where K is being added faster than it is wearing out Shade the entire area that represents where K is wearing out faster than it is being replaced Label the point where the economy will settle
20) Suppose that the production function is y = k0.25[that is, output per worker is equal to the (1/4th) root of capital per worker], s = 0.36, and lowercase delta (5)[the depreciation rate] = 0.10 and the population growth is 2 percent (n = 0.02). What is (approximately) the per capita steady state %3D consumption in this economy? Select one: а. 5004 b. 1.45 С. 302 d. 0.92
Consider an economy with fixed land T that is constant over time. Production is given by: AKTBL1-a-ß Y = Population grows at a rate n and productivity A grows at a rate equal to g. That is, Ĺ = nL and À = gA. Capital accumulates as Ø = I – SK with I = yY. These are assumptions typical of the K Solow model.
Consider an economy that exhibits both population growth (L grows at rate n) and technological progress (A grows at rate a) described by the production function, Y = F(K,AL) = Kª(AL)¹-α| Here K is capital and Y is output. (a) Show that this production function exhibits constant returns to scale. What is the per-effective-worker production function? (c) Find expressions for the steady-state capital-output ratio, capital stock per effective worker, and output per effective worker, as a function of the saving rate (s), the depreciation rate (8), the population growth rate (n), the rate of technological progress (a), and the coefficient a. (You may assume the condition that capital per effective worker evolves according to Ak = sf (k) − (a +n+8)k.) (d) Show that at the Golden Rule steady state the saving rate for this economy is equal to the parameter a.
please answer the following, I have attached an image of the question for better format. Thanks! 3. Suppose that the production function of a country is given by Y=KaL1-a, where 0<a<1, Y is output, L is labour, and K is capital, Derive the equation for steady state capital per worker, output per worker, and consumption per worker in terms of the saving rate (s) and depreciation rate (d).
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3. Y₁ = 3k+0.5 St = 0.3Yt d = 0.1 n = 0.05 What are the steady-state values of the capital-labor ratio k, output per worker y, and consumption per worker?