In the endogenous growth model of chapter 8, suppose that there are three possible uses of time. Let u denote the fraction of time spent working, s the fraction of time being unemployed and doing nothing, and 1-u-s the fraction of time spent acumulating human capital. Assume that z=1 and b-4.2 Also assume that the economy begins in period 1 with H=100 units of human capital. Suppose that the fraction spent working is 0.7 and the fraction spent unemployed is 0.05. Calculate aggregate human capital in period 5. 120 120.55 121 121.55

In the endogenous growth model of chapter 8, suppose that there are three possible uses of time. Let u denote the fraction of time spent working, s the fraction of time being unemployed and doing nothing, and 1-u-s the fraction of time spent acumulating human capital. Assume that z=1 and b-4.2 Also assume that the economy begins in period 1 with H=100 units of human capital. Suppose that the fraction spent working is 0.7 and the fraction spent unemployed is 0.05. Calculate aggregate human capital in period 5. 120 120.55 121 121.55

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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