Consider the standard Solow model. The expression for output per worker and the dynamics of capital per worker are given by the following expression: y = Aka ΔΕ = sy — Sk where > 0 is the depreciation rate of capital. (a) Using a Solow diagram, what is the effect of an increase in productivity A on steady state capital? (label the axes and mark the initial and the final steady state level of capital) (b) Find an algebraic expression for the steady state capital per worker. (c) What happens to steady state output and consumption after a positive productivity shock? Justify your response. (d) If the real wage equals the marginal product of labor, what is the growth rate of the real wage in steady state?

Consider the Solow model (Y-AK1/4L3/4). Suppose that the productivity parameter is A=500, the depreciation rate is d=1/10, the savings (investment) rate is s=0.30, and the labor force is constant and equal to 2 million. ÊÊWhat is the steady state capital stock (K)? Please choose the closest answer." a. b. 48200 million C. 34341 million d. 15930 million 18340 million

only part b solution is needed

What is the steady‑state level of capital? What is the steady‑state output?

Qutuion 6&7 only

An increase in research productivity: Suppose the economy is on a balanced growth path in the Romer model, and then, in the year 2030, research pro-ductivity z rises immediately and permanently to the new level z r. (a) Solve for the new growth rate of knowledge and yt.(b) Make a graph of yt over time using a ratio scale.

Then: In one graph show what happens if the I function increases (i.e. the % rises) In one graph show what happens if technology improves (i.e. A increases)

Consider a Solow–Swan model with saving rate s = 0.4, labour force growth gL = 0.05, constant productivity A = 1, and depreciation? = 0.05. If output per worker is y = Y/L = 200 and capital per worker is k = K/L = 800, how would k evolve over time?Group of answer choices k is below its steady state and decreases towards the steady state k is above its steady state and decreases towards the steady statek is at its steady state and remains constant k is above its steady state and increases towards the steady state

Mj

da qaoudon Suppose that the production function is given by Y=05/K √N, where Y is output, K is capital, and N is the number of workers. The steady-state level of capital per worker in terms of the saving rate, s, and the depreciation rate, 6, is KIN= (Property format your expression using the tools in the palette. Hover over tools to see keyboard shortcuts. E.g. a superscript can be created with the character.) The steady-state level of output per worker in terms of the saving rate, s, and the depreciation rate, 6, is VIN= (Property format your expression using the tools in the palette.) The equation for steady-state consumption per worker in terms of the saving rate, s, and the depreciation rate, 6, is CIN=(Property format your expression using the tools in the palette.)