4. Explain the idea of the macroeconomic production function to someone whoknows no economics. The production function we have discussed relates outputper capita to technology, labor (and population growth rate), capital, and hu-man capital. We should properly think of all of these variables as endogenousvariables. Think about policies that would affect these. Articulate three policyrecommendations for each. Be careful about the distinction between labor andpopulation. Do you think policies that would maximize investment would alsomaximize welfare?5. Using the Solow model, explain the effects of the following events on steadystate income per capita level and income per capita growth rate of countryAdanus using proper terminology:(a) Aliens attack Adanus and destroy all existing factories. Thankfully, thecitizens were not affected by the attacks.(b) Adanus receives a large influx of migrants from Mersinis. Population in-creases overnight. The migrants have the same fertility rate as locals.(c) People of Adanus decided to spend less on kebap and çöp şiş due to healthreasons. As a result, saving rate in the country increases.

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4. Explain the idea of the macroeconomic production function to someone who knows no economics. The production function we have discussed relates output per capita to technology, labor (and population growth rate), capital, and hu- man capital. We should properly think of all of these variables as endogenous variables. Think about policies that would affect these. Articulate three policy recommendations for each. Be careful about the distinction between labor and population. Do you think policies that would maximize investment would also maximize welfare?

4. Explain the idea of the macroeconomic production function to someone who knows no economics. The production function we have discussed relates output per capita to technology, labor (and population growth rate), capital, and hu- man capital. We should properly think of all of these variables as endogenous variables. Think about policies that would affect these. Articulate three policy recommendations for each. Be careful about the distinction between labor and population. Do you think policies that would maximize investment would also maximize welfare?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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