N5 there are 3 questionexplaination6. Assume an endogenous growth model with labor augmentingtechnology and a production function of the form Y = F(K, EL), with E =2(K/L). If the savings rate is s = 0.05 and there is neither populationgrowth nor depreciation of capital, what is the growth rate of output?A) 0%B) 2.5%C) 5%D) 10%E) it cannot be determined11. Growth accounting explainsA) how economic decisions control the accumulation of capitalB) how the current savings rate affects the stock of capital in the futureC) what part of growth in total output is due to growth in differentfactors of productionD) all of the aboveE) only A) and B)12. If Y is output, K is capital, u is the fraction of the labor force inuniversities, L is labor, and E is the stock of knowledge, and theproduction Y = F(K,(1 – u) EL) exhibits constant returns to scale, thenoutput (Y) will double if:A) Kis doubled.B) K and u are doubled.C) Land E are doubled.D) Lis doubled.E)none of the above

Since you have asked multiple question, we will solve the first question for you. If you want any…

Answered: 6. Assume an endogenous growth model…

ENGR.ECONOMIC ANALYSIS

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Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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Suppose that the production function is Y= 10(K)1/4 (L)3/4 and capital lasts for an average of 50 years so that 2% of capital wears out every year. Assume that the rate of growth of population equals 0. If the saving rate, s =0.128, calculate the steady-state level of capital per worker, output per worker, consumption per worker, saving and investment per worker and depreciation per worker.
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where H(0) = a# _ ]s(ß) Consider a simplified version of endogenous growth model discussed in the class. The growth rate is determined by: Region 1: For 0 se s$(1-m), s(B) 9t = H(8), + a' 1- Region 2 and 3: For (1- n) s 0 s 1, 9t = a#s(ß) %3D Note that s(B) Assume the following parameter values: 1+B° aH = 2, a² = 1, B = 1, 7 = 0.25 Q1: Suppose 0 = 0.25. Derive the economic growth rate. Q2: Suppose 0 = 0.5. Derive the economic growth rate. (Q3-Q5 will follow in the next page.)
Suppose that two countries share identical technology, depreciation rate, saving rate, and population growth. However, these two countries started off with different levels of capital stock. Which of the following is/are true? (i) The country with initially smaller capital stock grows more quickly to reach the steady state compared to the country with initially larger capital stock. (ii) The country with initially smaller capital stock will have a smaller capital stock in the steady state compared to the country with initially larger capital stock. (iii) Both countries will grow at the same rate in reaching the steady state. O a. Both (i) and (ii). O b. Only (iii). O c. Only (i). O d. Cannot tell. Need more information.
4. Assume an endogenous growth model with a production function that in per capita terms can be written as y = 0.8k. If the savings rate is s = 0.3, the rate of growth of population is n = 0.03, and the rate of depreciation is d = 0.1, how high is the rate of growth of output per capita? A. 14% B. 17% C. 13% D. 11% E. There is not enough information to calculate it.
Ab 1
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?
If real GDP per capita doubles between 2005 and 2020, what is the average growth rate of real GDP per capita? a)4.7% b)21% c)15% d)10.5%
The following formula describes the particular case of the endogenous growth pattern of Uzawa-Lucas. Show that the growth rate of y in BGP is determined by sA. Y = A (hL)'-«Kª, Y y = ; À = 0, L = 0, h = sy, K = sY. L' %3D
Q5) Solow Growth Model Based on Abel, Bernanke and Croushore, 10th edition, Chapter 6, Numerical Problems No. 5. An economy has the per-worker production function Yt = 3k95 where Yt is output per worker and k, is the capital-labor ratio. The depreciation rate is 8 = 0.1, and the population growth rate is n = 0.05. Saving is St = 0.3Y; where S; is total national saving and Y, is total output. a. Define the steady state of this economy. (Hint: see definition in slides.) b. What are the steady-state values of the capital-labor ratio, output per worker, and consumption per worker? c. Repeat Part (a) for a saving rate of 0.4 instead of 0.3.
Population Growth and Technological Progress-Work It Out An economy has a Cobb-Douglas production function: Y = K (LE)¹- The economy has a capital share of 0.20, a saving rate of 49 percent, a depreciation rate of 4.00 percent, a rate of population growth of 1.50 percent, and a rate of labor-augmenting technological change of 4.0 percent. It is in steady state. a. At what rates do total output and output per worker grow? Total output growth rate: Output per effective worker is constant in the steady state and does not change. increases in the steady state. declines in the steady state. % Output per worker growth rate: %
Then: In one graph show what happens if the I function increases (i.e. the % rises) In one graph show what happens if technology improves (i.e. A increases)

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