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b. 4.20
c. 5.023
d. 5.30
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- In a rich country A, the gross domestic product 1 per person is r = 53,000 (US dollars). In a poor country B, the GDP per person is p = 7,000. Suppose that the GDP of country A grows by 5% per year, and that an economic miracle in country B begins to propel a growth of 9% per year. Assume these growth rates are constant. 1) Over how many years does the absolute difference in GDP between rich country A and poor country B increase? 2) How many years does it take for the GDP of country B to exceed that of country A? (Justify your answers.)3. Y₁ = 3k+0.5 St = 0.3Yt d = 0.1 n = 0.05 What are the steady-state values of the capital-labor ratio k, output per worker y, and consumption per worker?please answer the following, I have attached an image of the question for better format. Thanks! 3. Suppose that the production function of a country is given by Y=KaL1-a, where 0<a<1, Y is output, L is labour, and K is capital, Derive the equation for steady state capital per worker, output per worker, and consumption per worker in terms of the saving rate (s) and depreciation rate (d).
- Given a saving rate of 5%, a depreciation rate of 1%, and a production function in which y = k0.5where y is output per worker and k is capital per worker, calculate the steady state values fori. capital per worker, ii. output per worker, iii. consumption per worker41. Assume that a country's per-worker production is y=1.5k3/4, where y is output per worker and k is capital per worker. Assume also that 10 percent of capital depreciates per year and there is no population growth or technological change. a. If the saving rate (s) is 0.15, what are capital per worker, production per worker, and consumption per worker in the steady state? b. Solve for steady-state capital per worker, production per worker, and consumption per worker with s-0.3. c. Solve for steady-state capital per worker, production per worker, and consumption per worker with s-0.45. d. Is it possible to save too much? Why?2 1 5. Suppose the production function for an economy is given by F(K, A, L) = AK L5. If A = 2 and the savings rate is given by s = capital per worker is equal to 10? %3D .25, what is the consumption per worker when a. 2.32 b. 9.28 с. 3.48 (-0,3)y d. 6.96 6. Suppose that an economy with no population growth is at a level of capital per worker ko, such that sf (ko) ko b. k, < ko c. k = ko d. Unknown/Impossible to tell %3D
- Y75.2 Consider the following economy: FYI: for this production function.() = A Parameter Value Investment rate (0) 3% Depreciation rate (8) 5% Population growth (9₁) 2% Productivity level (A) 25 Productivity Growth (ga) 4% Currently, the economy has a labour force of 5,000 and a capital stock equal to 15,000. 5.2.1 Calculate this country's current rate of economic growth. 5.2.2 How fast will country grow annually once its steady state is reached? 12 Y = AK3L33. Y₁ = 3k+0.5 St = 0.3Yt d = 0.1 n = 0.05 What are the steady-state values of the capital-labor ratio k, output per worker y, and consumption per worker?
- Don’t need explanationUse the following table to find the steady-state values of the capital-labor ratio and output if the per-worker production 03 function is y=2k S Saving rate 8 Depreciation rate n Population growth rate A Technology 0.35 0.02 0.06 2 k* = Steady-state capital-labor ratio = y*= Steady-state output = (Round your responses to two decimal places.) CHILD Output, Investment, and Depreciation Capital-Labor Ratio Output Depreciation Investment After plotting the final point of your multipoint curve, press the Esc key on your keyboard to end the line QYou are given the production function Y= AK H14 N 2, where A = 4. The population growth rate n is 0.025, the depreciation rate d is 0.075 (both physical and human capital depreciate at the same rate), and the growth rate of autonomous factors is zero. Investment 1 is the sum of two components, investment in physical capital Ig and investment in human capital Iµ. The fraction of GDP that goes to physical capital investment is SK = 0.05 and the fraction of GDP that goes to human capital investment is SH = 0.05. (i) Convert the production function to a function relating Y/N to both K/N and H/N. (ii) Find the steady-state physical capital-labor ratio and the steady - state human capital - labor ratio. (iii) Find the steady – state per person output. 2.
