Consider the Human Capital Accumulation model with a production function given by Y = AK0.5 H0.5, saving rates sk 0.16 and SH 0.09, a common depreciation rate is 8 = 0.05 and A 1. Which of the following is false? = = the long-run intensity of human capital relative to physical capital will fall when the long run growth rate of physical capital will fall when SH falls the long-run intensity of human capital relative to physical capital is 9/16 the long-run growth rate of physical capital is 0.12 SH falls

I need help with parts (f) and (g) of question 2

Suppose the per-worker production function is: y = A(1-gA) Where ga is the fraction of all workers that produce technologies. Further, suppose the growth of technology is given by the following equation growth of A = (g//m)(L) Suppose L = 1 and m = 7, and that initially ga = 0.7. If ga fell to 0.8 the level of output per %3D worker would: fall Impossible to say rise stay the same

Problem 2 In class, we argued that if people could accumulate human as well as physical capital, the production function would look like the "AK" production function. (a) If the production function is AK and the savings rate is constant at rate "s", and the rates of depreciation and population growth are 8 and n respectively, what would the growth rate of the economy be? (b) What would be the macroeconomic consequences of increasing the savings rate in this economy? Explain using the model and intuitively. (c) What would be the consequences of an increase in fertility in this economy? Are these consequences good or bad? Is this answer unambiguous? (d) How are human and physical capital different from one another in the way they evolve from period to period? (e) Does human capital have an upper limit? If it does, what is the resulting production function when this is reached and the growth rate of the economy? If it doesn't have a limit, what is the resulting growth rate of output as it…