#4 please Original K = $45 billionOriginal L = 12.5 milliond = 6%L growth = 2.5%K= value of kapital; L= Labor force; d= Depreciation1. What is the original K/L ratio?45bil/12.5mil= 18:5 or 3.6 is the K/L ratio2. After 1 year, given depreciation and the growth in the labor force, what is the new K/L ratio?3.30 work-(45 bil-6/100x45 bil, 12.5 Million+2.5/100×12.5 million, K/L Ratio=42.3 bil/12.81mil=3.30K/L Ratio=42.3 million12.81 million=3.30)3. How much gross investment is necessary to bring the K/L ratio back to its original level?Investment required = $2.699 billion.a. what % of the original level of Kapital is this gross investment?Gross investment required is 6% of original Kapital. 2.699/45x100%b. How much gross investment is necessary per unit of additional labor?Gross investment required is 208.30 millions per unit of additional labor.4. In order to achieve a target growth in the original K/L ratio of 4%, how much net investmentis necessary?

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4. In order to achieve a target growth in the original K/L ratio of 4%, how much net investment is necessary?

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Question

#4 please

Original K = $45 billion
Original L = 12.5 million
d = 6%
L growth = 2.5%
K= value of kapital; L= Labor force; d= Depreciation
1. What is the original K/L ratio?
45bil/12.5mil= 18:5 or 3.6 is the K/L ratio
2. After 1 year, given depreciation and the growth in the labor force, what is the new K/L ratio?
3.30 work-(45 bil-6/100x45 bil, 12.5 Million+2.5/100×12.5 million, K/L Ratio=42.3 bil/12.81
mil=3.30K/L Ratio=42.3 million12.81 million=3.30)
3. How much gross investment is necessary to bring the K/L ratio back to its original level?
Investment required = $2.699 billion.
a. what % of the original level of Kapital is this gross investment?
Gross investment required is 6% of original Kapital. 2.699/45x100%
b. How much gross investment is necessary per unit of additional labor?
Gross investment required is 208.30 millions per unit of additional labor.
4. In order to achieve a target growth in the original K/L ratio of 4%, how much net investment
is necessary?

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