(a) Time is continuous and the production function of the economy is given by (1) Yt = (Kt)" (At Nt ) ¹-a Total factor productivity evolves according to Ao such that = g A (2) where the growth rate of technological progress g is exogenous. Population grows at an exogenous rate n according to (3) Find an expression for the growth rate of (i) output per capita (Y₁ / Nt) and (ii) output per effective worker (Y₁ / (A+Nt) ). At = egt Ntent No with No 1 such that = When is the growth rate of (ii) equal to zero? Ń N = n

(a) Time is continuous and the production function of the economy is given by (1) Yt = (Kt)" (At Nt ) ¹-a Total factor productivity evolves according to Ao such that = g A (2) where the growth rate of technological progress g is exogenous. Population grows at an exogenous rate n according to (3) Find an expression for the growth rate of (i) output per capita (Y₁ / Nt) and (ii) output per effective worker (Y₁ / (A+Nt) ). At = egt Ntent No with No 1 such that = When is the growth rate of (ii) equal to zero? Ń N = n

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Was there an error in calculation of average productivity? Since Function q = 10 L - 80 - 0.2L^2 then q/L = 10 - 80/L - 0.2 L, correct?Can you verify? Thanks
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.
I need help with parts (f) and (g) of question 2
Please don't copy
Pls help with below homework.
The productivity of a country is given by f(x,y)=15.21x0.438y0.562, where x is the amount of labor and y is the amount of capital. (A) Find fx(x,y) and fy(x,y). (B) Find fx(67,55) and fy(67,55), and interpret the results.
(a) Two countries, Country A and Country B, are described by the Solow growth model. Both countries are identical, except that the rate of labor-augmenting technological progress is higher in A than in B. i. In which country is the steady-state growth rate of output per effective worker higher? ii. Does the Solow growth model predict that the two economies will converge to the same steady state? p (b) Based on the Solow growth model with population growth and labor-augmenting technological progress, explain how each of the following policies would affect the steady-state level and steady-state growth rate of total output per person: i. an increase in the government's budget deficit poits) inis) ii. grants to support research and development (c) Consider a Solow model where the production function no longer exhibits diminishing returns to capital accumulation. Assume the production function is now Y = AK. What happens to the growth rate of per capita GDP over time? (6pints)
(A) cite the relationship between education and population growth. In 3 sentences only. (B) As of January 1, 2022, the population of Philippines was estimated to be 112,321,991 people. Is this more of a boon or a bane for us? In what way?
Between 1960 and 2010 the annual growth rate was 3% in country A and 1% in country B. The two countries are in the process of convergence if: (a) in 1960 country A was poorer than country B (b) in 1960 country A was richer than country B (c) since 1960 the capital output ration has increased more in country A than in country B (d) the savings rate is higher in country A than country B (e) both (a) and (c)
In this problem, we distinguish between labor and population in the Solow growth model. A proportion of the population, a, between zero and one, works. The production function is now written as Y = A(K^1/3)[(aL)^2/3] (a) How does an increase in a from 0.3 to 0.6 change steady state GDP? (b) Does it change the steady-state capital? Explain. (c) Suppose a rises steadily over time. How do you think would affect the growth rate of GDP?
Assuming an economy is at steady state, with the use of an appropriate diagram withdescriptions illustrate the impact of a reduction in the saving rate on capital perworker and output per worker.
The convergence to a steady-state capital-labour ratio k* is ensured by the fact that if k is at a level Multiple Choice lower than k*, saving will exceed the investment required to maintain constant k, causing k to rise lower than k*, investment will exceed saving, leading to an increase in the capital stock lower than k*, saving will exceed the investment required to maintain a constant k, causing output per capita to decline higher than k*, the rate of depreciation will be higher than the savings rate, causing k to decrease higher than K*, output per capita will continue to increase until a new steady-state equilibrium is reached