The nominal interest rate is equal to i=0,04, and the rate of depreciation of capital is d=0,09. The price of capital equipment is equal to the overall price level. Both price levels are expected to grow at the rate equal to n=0,01. The production function is given by Y = (AKL)0.76 , where A is technology, L is labor and K is capital stock. The level of output is equal to 1600. Assume that the capital stock is always at the desired level. (Please fill in numbers; use a comma as a decimal separator: 10,5) 1. The real value of the user cost of capital is equal to 2. If an increase in productivity of capital increases output by 160, the desired capital stock increases by 3. Suppose that Y=1600, i=0,04, d=D0,09, n=0,01 when the government imposed a tax on the profits of corporations at the rate of 0,25. The change in the desired capital stock is
The nominal interest rate is equal to i=0,04, and the rate of depreciation of capital is d=0,09. The price of capital equipment is equal to the overall price level. Both price levels are expected to grow at the rate equal to n=0,01. The production function is given by Y = (AKL)0.76 , where A is technology, L is labor and K is capital stock. The level of output is equal to 1600. Assume that the capital stock is always at the desired level. (Please fill in numbers; use a comma as a decimal separator: 10,5) 1. The real value of the user cost of capital is equal to 2. If an increase in productivity of capital increases output by 160, the desired capital stock increases by 3. Suppose that Y=1600, i=0,04, d=D0,09, n=0,01 when the government imposed a tax on the profits of corporations at the rate of 0,25. The change in the desired capital stock is
Chapter1: Making Economics Decisions
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![The nominal interest rate is equal to i=0,04, and the rate of depreciation of capital is d=0,09. The price of capital equipment is equal to the overall
price level. Both price levels are expected to grow at the rate equal to n=0,01. The production function is given by Y = (AKL)0,75, where A is
technology, L is labor and K is capital stock. The level of output is equal to 1600. Assume that the capital stock is always at the desired level.
(Please fill in numbers; use a comma as a decimal separator: 10,5)
1. The real value of the user cost of capital is equal to
2. If an increase in productivity of capital increases output by 160, the desired capital stock increases by
3. Suppose that Y=1600, i=0,04, d=0,09, t=0,01 when the government imposed a tax on the profits of corporations at the rate of 0,25. The
change in the desired capital stock is](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb2306c27-5f56-4b06-a103-bd2703347cd8%2F9cc7a4a8-98b4-4148-aa86-22f68c8bba45%2Fin4zn9p_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The nominal interest rate is equal to i=0,04, and the rate of depreciation of capital is d=0,09. The price of capital equipment is equal to the overall
price level. Both price levels are expected to grow at the rate equal to n=0,01. The production function is given by Y = (AKL)0,75, where A is
technology, L is labor and K is capital stock. The level of output is equal to 1600. Assume that the capital stock is always at the desired level.
(Please fill in numbers; use a comma as a decimal separator: 10,5)
1. The real value of the user cost of capital is equal to
2. If an increase in productivity of capital increases output by 160, the desired capital stock increases by
3. Suppose that Y=1600, i=0,04, d=0,09, t=0,01 when the government imposed a tax on the profits of corporations at the rate of 0,25. The
change in the desired capital stock is
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