Macroeconomics
10th Edition
ISBN: 9781319105990
Author: Mankiw, N. Gregory.
Publisher: Worth Publishers,
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Question
Chapter 8, Problem 3PA
(a)
To determine
The production function per worker.
(b)
To determine
The steady state capital stock per worker, output per worker and consumption per worker.
(c)
To determine
The steady state capital stock per worker, output per worker and consumption per worker at different savings rates.
(d)
To determine
The marginal product of capital.
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Question 3Consider an economy described by the production function:Y = F(K, L) = K0.3 L0.7
a. What is the per-worker production function?b. Assuming no population growth or technological progress, find the steady-state capital stock per worker, output per worker, and consumption per worker as a function of the saving rate and the depreciation rate.c. Assume that the depreciation rate is 10 percent per year. Make a table showing steadystate capital per worker, output per worker, and consumption per worker for saving ratesof 0 percent, 10 percent, 20 percent, 30 percent, and so on. (You will need a calculator with an exponent key for this.) What saving rate maximizes output per worker? What saving rate maximizes consumption per worker?
Consider an economy described by the production function: Y = F(K, L) = K^0,3L^0,7
A. What is the per-worker production function?
B. Assuming no population growth or technological progress, find the steady-state capital stock per worker, output per worker, and consumption per worker as a function of the saving rate and the depreciation rate.
answer questions a and b please
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