Suppose that the economy of Corn Republic is characterized by the following functions: Y = KªN'-a where a = C = (1 – s) Y where s is the economy's saving rate At the equilibrium I = sY And, capital over time evolves according to AK =I– SK where d is the depreciation rate for this economy a. Can you derive the capital per worker, output per worker, consumption per worker in the steady state? Answer: [Select] (You must learn to derive them in terms of s and d) b. Given s = 0.32 and 8= 0.08, what is the output per worker in the steady state? Answer: Output per worker [ Select ] c. Suppose that the economy of Wheat Republic is characterized by the same functions and the same depreciation rate except that its saving rate is only s = 0.16. What is the output per worker in the steady state for this economy? Which one of the two economies is poorer? Answer: Output per worker [ Select] Wheat Rep. is [ Select] than Corn Rep.
Suppose that the economy of Corn Republic is characterized by the following functions: Y = KªN'-a where a = C = (1 – s) Y where s is the economy's saving rate At the equilibrium I = sY And, capital over time evolves according to AK =I– SK where d is the depreciation rate for this economy a. Can you derive the capital per worker, output per worker, consumption per worker in the steady state? Answer: [Select] (You must learn to derive them in terms of s and d) b. Given s = 0.32 and 8= 0.08, what is the output per worker in the steady state? Answer: Output per worker [ Select ] c. Suppose that the economy of Wheat Republic is characterized by the same functions and the same depreciation rate except that its saving rate is only s = 0.16. What is the output per worker in the steady state for this economy? Which one of the two economies is poorer? Answer: Output per worker [ Select] Wheat Rep. is [ Select] than Corn Rep.
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![Suppose that the economy of Corn Republic is characterized by the following functions:
Y = KªN'-a
where a =
C = (1 – s) Y
where s is the economy's saving rate
At the equilibrium I = sY
And, capital over time evolves according to
AK = I – SK
where & is the depreciation rate for this economy
a. Can you derive the capital per worker, output per worker, consumption per worker in the steady state?
Answer: [ Select)
v (You must learn to derive them in terms of s and 8)
b. Given s = 0.32 and 8 = 0.08, what is the output per worker in the steady state?
Answer:
Output per worker =
[ Select ]
c. Suppose that the economy of Wheat Republic is characterized by the same functions and the same depreciation rate except that its saving rate is only s = 0.16. What is
the output per worker in the steady state for this economy? Which one of the two economies is poorer?
Answer:
Output per worker
[ Select ]
Wheat Rep. is [ Select]
than Corn Rep.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F12a3b6ff-52e0-4bd5-a604-586aafad7720%2F1ac7fd25-61da-487f-b05e-046197a77deb%2Ff1bbcib_processed.png&w=3840&q=75)
Transcribed Image Text:Suppose that the economy of Corn Republic is characterized by the following functions:
Y = KªN'-a
where a =
C = (1 – s) Y
where s is the economy's saving rate
At the equilibrium I = sY
And, capital over time evolves according to
AK = I – SK
where & is the depreciation rate for this economy
a. Can you derive the capital per worker, output per worker, consumption per worker in the steady state?
Answer: [ Select)
v (You must learn to derive them in terms of s and 8)
b. Given s = 0.32 and 8 = 0.08, what is the output per worker in the steady state?
Answer:
Output per worker =
[ Select ]
c. Suppose that the economy of Wheat Republic is characterized by the same functions and the same depreciation rate except that its saving rate is only s = 0.16. What is
the output per worker in the steady state for this economy? Which one of the two economies is poorer?
Answer:
Output per worker
[ Select ]
Wheat Rep. is [ Select]
than Corn Rep.
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