Suppose that the economy of Corn Republic is characterized by the following functions:Y = KªN'-awhere a =C = (1 – s) Ywhere s is the economy's saving rateAt the equilibrium I = sYAnd, capital over time evolves according toAK = I – SKwhere & is the depreciation rate for this economya. 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 isthe 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.

Y=KαN1-α where α=13C=(1-s)Y where s is the economy's saving rate

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.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter20: Economic Growth

Section: Chapter Questions

Problem 5SCQ: What do the growth accounting studies conclude are the determinants of growth? Which is more...

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Question

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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