Different situations according solow growth model

Assignment Help Macroeconomics
Reference no: EM1314076

Assume that the economy starts in steady state. According to the Solow growth model, how would each of the following affect consumption per worker in the long run, Explain?

a. The destruction of a portion of the nation's capital stock in a war.

b. A temporary rise I the saving rate.

c. An increase in government regulations whose net effect is to lower the marginal productivity of capital.

Reference no: EM1314076

Questions Cloud

Linear relation between degree of stenosis-reactive nuclei : Are you doubtful of any of these data points? if so why does there show to be a linear relation between degree of stenosis and nuber of reactive nuclei?
Using venn diagram for solving word problems : Using venn diagram for solving word problems.
Test of goodness of fit-chi square : Would it be reasonable to conclude that the population distribution is Poisson with a mean of 2.0?
Purpose a petty cash payments report for february : Purpose a petty cash payments report for February with these categories: delivery expense, mileage expense, postage expense, merchandise inventory (for transportation-in), and office supplies expense.
Different situations according solow growth model : Assume that the economy starts in steady state. According to the Solow growth model, how would each of the following affect consumption per worker in the long run, Explain?
Determining confidence interval for estimating dtata : Determine the 95% confidence interval for your estimate what data have you utilized as the basis of your predictions what suppositions have you made.
Political business cycle theory : Political business cycle: Do economic events affect presidential elections? To test this so-called political business cycle theory, Gary Smith 20  obtained the following regression results based on the U.S Presidential elections for the four yearl..
Prepare the necessary entries to clear the intangible assets : Prepare the necessary entries to clear the Intangible Assets account and to set up separate accounts For distinct types of intangibles. Make the entries as of December 31, 2007,
Tests and statistics : Test the hypothesis that no difference exists between the groups at α = .05 and perform and report all related tests and statistics.

Reviews

Write a Review

 

Macroeconomics Questions & Answers

  Behavior of average product and marginal product

Describe the law of diminishing returns. Then discuss why you agree or disagree with following statements.

  Average consumer prices and new economic policy

Prepare a table/graph for inflation in "your country" (use North Korea for the country; if no data is available, use India) for about the latest ten year period for which you have data.

  Profit maximizing level of labor

The supply curve for labor is S L = 100W, where W is the market wage. The marginal revenue product curve for the firm is D L = -50W + 450.

  Application of heckscher

Which country is capital abundant according to the Heckscher-Ohlin theorem? Given your answer to (a), draw the PPF for Canada. Also draw the indifference curve and the relative price line for the no-trade equilibrium.

  Calculating the growth rate of output

What is the inflation rate in Home? In Foreign? What is the rate of change in the nominal exchange rate? Which currency is expected to appreciate? At what rate? Explain.

  Understanding international macro economy

The questions posed are broad and open ended so be careful to allow yourself enough research and planning time.

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Economic efficiency and externality related problem

Use the data in the table to the right to answer the following questions. What is the external cost per unit of production? What level is produced if there is no regulation of the externality?

  Statistical packages-linear regressions

The intent of this week exercise is to familiarize with EXCEL and to gain experience and practice in interpreting the output generated by most statistical packages (EXCEL) when linear regressions are run on a set of data.

  Equilibrium price and output in short run and long run

Find out the average total cost and average variable cost as a function of the level of output. Assuming the firm has the same cost curves in the long-run for q>0 and C (0) =0, how much will it produce in the long-run?

  Correlation between savings and capital formation

Write down the relationship between savings, capital formation, and consumption.

  Explanation of import tariff and export quota

Write a brief explanation of each of the following terms. import tariff, effective rate of protection

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd