a)What is the initial population of Cobra Island? b)Let the wage of labor is 0.4, and the rental rate of capital is 0.6. The capital to labor ratio after two years (in 2002) is 50 while the amount of workers is 1000. The growth rate of capital is 6,970%. The growth rate of labor is 100%. Find the GDP of Cobra Island. c)How much labor is there in Cobra Island one year after the initial year (or in 2001)?
In 2000, the country of Cobra Island has an initial level of capital set at 10 units. The population of Cobra Island is unknown, but we do know that it grows each year at some constant rate. The level of total income is 500 cobra dollars. Finally, the total production function of Cobra Island can be described as Y=10*L1/2k1/2
a)What is the initial population of Cobra Island?
b)Let the wage of labor is 0.4, and the rental rate of capital is 0.6. The capital to labor ratio after two years (in 2002) is 50 while the amount of workers is 1000. The growth rate of capital is 6,970%. The growth rate of labor is 100%. Find the
c)How much labor is there in Cobra Island one year after the initial year (or in 2001)?
d)The growth rate of income is 1,089%. Find the Solow Residual. Do not give the answer as a percentage
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