Fixed values for the saving rate and depreciation

Assignment Help Business Economics
Reference no: EM13742062

Given the production function Y = A and fixed values for the saving rate and depreciation, if productivity is growing at an average rate of three percent, and the labor input grows at two percent, there is a unique growth rate of capital that is sustainable. That is, if the growth rate of capital is either higher or lower than this steady-state value, then it must eventually change, even if nothing else in the economy changes. Calculate this steady-state growth rate of capital, and explain why it alone is a sustainable rate. [Hint: Use the fact that the growth rates of output and capital per worker are 43% higher than the growth rate of productivity.]

Reference no: EM13742062

Previous Q& A

  Assignment on managing catering supplies

Managing Catering Supplies, Lisa Noriega developed the spreadsheet shown in Figure 4-24 so that she can better manage her inventory of disposable cater-ing supplies. Download the spreadsheet named Ch04Ex01 so you can help her with the inventory an..

  Describe major differences in bronze age sites at knossos

Describe major differences in the Bronze age sites at Knossos and Mycenae. What was the purpose of each site? What structural innovations or conveniences were provided by the architecture.

  Discuss the cost and benefit of paying

Using present value analysis math, discuss the cost and benefit of paying for 4 years of college. Make any assumptions you want about the market interest rates. Use math and discuss. Is going to college worth it?

  How it affect us psychologically and how is link to biology

The essay should link Biology as a whole, and behavioral connections between psychology and Biology, so basically it is a connective essay between Biology, and how it effects people, like how does it affect them crying, or laughing or sometimes ma..

  Periodically issues reports on wages of entry-level workers

The Economic Policy Institute periodically issues reports on wages of entry-level workers. The institute reported that entry-level wages for male college graduates were $21.68 per hour and for female college graduates were $18.80 per hour in 2011.

  What elements the profession remain unchanged

What elements the profession remain unchanged? What elements are completely different? Identify THREE objects/behaviors we have seen in our course materials that have impressed you.

  Economy is in a steady state

Consumption per worker is 72, depreciation is 12.5%, and capital per worker is 64. Given the production function y = 20 , show that this economy is in a steady state.

  What signs and symptoms did greg exhibit

What signs and symptoms did Greg exhibit when he was in the house and Was Mrs. Myron correct when she said that Greg was dehydrated

  Social surplus created by eradicating polio

Suppose that the cost of eradicating polio from a society of 1,000 persons is $5 per person. Also suppose that only two persons in that society will benefit from that policy, and the benefit to each of those persons is $2,000. Then what is the social..

  A parent has a pile of toys to divide between two children

A parent has a pile of toys to divide between two children. Assume that there is an even number of each toy. What method of dividing the toys ensures that the final division is efficient?

Reviews

Write a Review

 

Similar Q& A

  Us cigarette organization has negotiated with congress

The U.S. cigarette organization has negotiated with Congress also government agencies to settle liability claims against it.

  Identify the nash equilibrium of this game

Does either player have a dominant strategy? Explain why or why not? Is there a dominant solution for this game? c) Identify the Nash equilibrium of this game. Explain.

  Explain why money multiplier differs from simple deposit

If, in addition, currency deposit ratio(c) is 0.05 and excess reserve ratio (e) is 0.15, what is money multiplier. Explain why money multiplier differs from simple deposit multiplier.

  Advantages and disadvantages of regression models

What are the advantages and disadvantages of regression models in comparison to using a computerized regression routine.

  Solow growth model

The Solow Growth Model. In 2010, Japan was a large open economy with perfect capital mobility that was at its steady state.

  How many firms would be in the market in the spne

If there are two firms in the market, what are their profits after taking into account the entry cost?

  Consider the meaning and operation

This assignment provides an opportunity for you to consider the meaning and operation of internal control by reflecting on the design, implementation and effectiveness of internal control plans in a business process.

  How many male workers would the firm hire

How many male workers would the firm hire if the employer did not discriminate? How many female workers would be hired?

  Cooperate with its rival or cheat in every period of play

Every may either 'cooperate' with its rival or 'cheat' in every period of play. If both cooperate, they earn $100 every in that period.

  Is there anything in what we have studied

Is there anything in what we have studied, that can point us towards an equitable solution to this problem while still protecting the environment we all share? What is that solution?

  Elucidate why does sex discrimination seem to persist

Elucidate why does sex discrimination seem to persist on Wall Street in spite of the negative publicity of lawsuits and monetary costs of settlement.

  Frances every capita gdp

Elucidate however, was 3 percent in Finland also 1.8 percent in France. From this we can conclude that France's every capita GDP

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