Macroeconomics (Mcgraw-hill Series in Economics)
Macroeconomics (Mcgraw-hill Series in Economics)
10th Edition
ISBN: 9781259663048
Author: David C Colander
Publisher: McGraw-Hill Education
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Chapter 3, Problem 3QAP

(a)

To determine

Household decisions about consumption and allocation of time.

(b)

To determine

Bargaining in household decisions.

(c)

To determine

Individual power to bargain effectively.

(d)

To determine

Individual power to bargain effectively.

(e)

To determine

Sense of the household decisions.

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3. A country has the following production function: Y = K0.2L0.6p0.2 where Y is total output, K is capital stock, L is population size and P is land size. The depreciation rate (8) is 0.05. The population growth rate (n) is 0. We define: y = ½, k = 1 and p = . Land size is fixed. L a) Find out the steady state values of k and y in terms of p, the per capita land size.
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