Suppose the economy of an island behaves as the Solow model (Y=AK1/2L1/2), version 1.0 (constant population). Suppose that the productivity parameter is A=90, the depreciation rate is d=1/10, the savings investment) rate is s=0.10, and the labor force is equal to 2 million (and constant over time). Suppose in year 2010 the economy is in a steady state. Compute the 2010 values for overall capital (K) and income per worker (Y/L). Pick the closest values. The stock of capital is between 6 and 7 million. Income per worker is between 2.5 and 3.3. O None of the other options The stock of capital is between 62 and 66 trillion. Income per worker is between 16000 and 17000. The stock of capital is between 12nd 14 billion. Income per worker is between 4000 and 5000.
Suppose the economy of an island behaves as the Solow model (Y=AK1/2L1/2), version 1.0 (constant population). Suppose that the productivity parameter is A=90, the depreciation rate is d=1/10, the savings investment) rate is s=0.10, and the labor force is equal to 2 million (and constant over time). Suppose in year 2010 the economy is in a steady state. Compute the 2010 values for overall capital (K) and income per worker (Y/L). Pick the closest values. The stock of capital is between 6 and 7 million. Income per worker is between 2.5 and 3.3. O None of the other options The stock of capital is between 62 and 66 trillion. Income per worker is between 16000 and 17000. The stock of capital is between 12nd 14 billion. Income per worker is between 4000 and 5000.
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Transcribed Image Text:Problem 2
Suppose the economy of an island behaves as the Solow model (Y=AK1/2L1/2), version 1.0 (constant
population). Suppose that the productivity parameter is A=90, the depreciation rate is d=1/10, the savings
(investment) rate is s=0.10, and the labor force is equal to 2 million (and constant over time).
Suppose in year 2010 the economy is in a steady state. Compute the 2010 values
for overall capital (K) and income per worker (Y/L). Pick the closest values.
The stock of capital is between 6 and 7 million. Income per worker is between 2.5 and
3.3.
O None of the other options
The stock of capital is between 62 and 66 trillion. Income per worker is between
16000 and 17000.
The stock of capital is between 12md 14 billion. Income per worker is between 4000
and 5000.
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