The following equations characterize equilibrium in the basic Solow growth model: Y = AKªL'-a C = (1 – s)Y Y = C +I AK = I – SK Answer the following. Use the following parameter values for this problem: A = 1000 a = 0.35 8 = 0.12 s = 0.15 and assume that the economy initially has K = 50, 000 units of capital and that the size of the labor force is L= 100. Q6.1 Compute the current output Y of the economy. Round your answer to at least three decimal places. Do not include commas, dollar signs, or other non-numeric characters in your answer. 880,317.837 Save Answer Last saved on Oct 28 at 9:19 PM Q6.2 Compute current output per worker y = Y/L for the economy. Round your answer to at least three decimal places. Do not include commas, dollar signs, or other non-numeric characters in your answer. 8803.178 Save Answer Last saved on Oct 28 at 11:31 PM Q6.3 Compute the amount of capital K' that the economy will have next period. Round your answer to at least three decimal places. Do not include commas, dollar signs, or other non-numeric characters in your answer. Q6.4 Compute the amount of capital per worker k' = K'/L that the economy will have next period. Round your answer to at least three decimal places. Do not include commas, dollar signs, or other non-numeric characters in your answer. Enter your answer here
The following equations characterize equilibrium in the basic Solow growth model: Y = AKªL'-a C = (1 – s)Y Y = C +I AK = I – SK Answer the following. Use the following parameter values for this problem: A = 1000 a = 0.35 8 = 0.12 s = 0.15 and assume that the economy initially has K = 50, 000 units of capital and that the size of the labor force is L= 100. Q6.1 Compute the current output Y of the economy. Round your answer to at least three decimal places. Do not include commas, dollar signs, or other non-numeric characters in your answer. 880,317.837 Save Answer Last saved on Oct 28 at 9:19 PM Q6.2 Compute current output per worker y = Y/L for the economy. Round your answer to at least three decimal places. Do not include commas, dollar signs, or other non-numeric characters in your answer. 8803.178 Save Answer Last saved on Oct 28 at 11:31 PM Q6.3 Compute the amount of capital K' that the economy will have next period. Round your answer to at least three decimal places. Do not include commas, dollar signs, or other non-numeric characters in your answer. Q6.4 Compute the amount of capital per worker k' = K'/L that the economy will have next period. Round your answer to at least three decimal places. Do not include commas, dollar signs, or other non-numeric characters in your answer. Enter your answer here
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:The following equations characterize equilibrium in the basic Solow growth model:
Y = AKªL'-a
C = (1 – s)Y
Y = C +I
AK = I – 8K
Answer the following. Use the following parameter values for this problem:
A = 1000
α0.35
8 = 0.12
s = 0.15
and assume that the economy initially has K =
= 50, 000 units of capital and that the size of the
labor force is L
100.
Q6.1
Compute the current output Y of the economy.
Round your answer to at least three decimal places. Do not include commas, dollar signs, or
other non-numeric characters in your answer.
880,317.837
Save Answer
Last saved on Oct 28 at 9:19 PM
Q6.2
Compute current output per worker y = Y/L for the economy.
Round your answer to at least three decimal places. Do not include commas, dollar signs, or
other non-numeric characters in your answer.
8803.178
Save Answer
Last saved on Oct 28 at 11:31 PM
Q6.3
Compute the amount of capital K' that the economy will have next period.
Round your answer to at least three decimal places. Do not include commas, dollar signs, or
other non-numeric characters in your answer.
Q6.4
Compute the amount of capital per worker k'
= K'/L that the economy will have next period.
|
Round
I your answer to at least three decimal places. Do not include commas, dollar signs, or
other non-numeric characters in your answer.
Enter your answer here
Transcribed Image Text:Q6.5
Compute the output Y' that the economy will have next period.
Round your answer to at least three decimal places. Do not include commas, dollar signs, or
other non-numeric characters in your answer.
Enter your answer here
Save Answer
Q6.6
Compute the output y' = Y'/L that the economy will have next period.
%3D
Round your answer to at least three decimal places. Do not include commas, dollar signs, or
other non-numeric characters in your answer.
Enter your answer here
Save Answer
Q6.7
The growth rate of output per worker is:
y/ –
Iy
Compute the growth rate of output per worker.
Enter as rate, not percent. Round your answer to at least three decimal places. Do not include
commas, dollar signs, or other non-numeric characters in your answer.
Enter your answer here
Save Answer
Q6.8
Compute steady state capital per worker for this economy.
Round your answer to at least three decimal places. Do not include commas, dollar signs, or
other non-numeric characters in your answer.
Enter your answer here
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