Ratio of income to capital in two countries

Assignment Help Macroeconomics
Reference no: EM131079451

Countries A and Z are identical, except that A's saving rate is twice that of Z. Both countries follow the simple solow growth model with no changes in technology level. The depreciation rate is 1% and the population growth rate is 1% in both countries. In 2013, capital per worker is $10000 and real GDP per worker is $2000 for both countries.The growth rate of capital per worker in country Z is 0.5% per annum.

1. What is the ratio of income to capital in these two countries?

2. What is the saving rate in country Z?

3. What is the growth rate of capital per worker in country A?

Reference no: EM131079451

Questions Cloud

What are all tangible benefits of information systems : A company that controls finances in the home country and decentralizes production, sales, and marketing operations to other countries is using a __________ strategy.
Net disbursement for the plans : There will be no salvage value at the end of the 18th year. Using i=9 percent compare the present worth of the net disbursement for the plans.
Find a complementary or competing company in same industry : What are the security or control issuesthat should be addressed as part of the technology selection process for Kirby's business?
Long run costs for blockbuster : What were the long run costs for Blockbuster and the divisible inputs? Who were their competitors?
Ratio of income to capital in two countries : 1. What is the ratio of income to capital in these two countries? 2. What is the saving rate in country Z? 3. What is the growth rate of capital per worker in country A?
Forensic significance of the condition known as cadaveric : I need help with these questions: What are the objectives of death investigation and why they are important?
Display the contents of both arrays on the screen : If the user hits the sort button, uses the JTextArea method append to append the results of sorting.
Indicate audit procedures that should have brought the item : For each of the above events or transactions, indicate the audit procedures that should have brought the item to the attention of the auditor and the form of disclosure in the financial statements including the reasons for such disclosure.
Role of economics in health care : Describe why it is important for health policymakers to be familiar with basic economic concepts? Explain role of economics in health care? Examine the use of economic models to help forecast the impact of policy on health care delivery?

Reviews

Write a Review

 

Macroeconomics Questions & Answers

  The government during the financial crisis

Which of the following policy combinations were used by the government during the financial crisis of 2007-2009 in the U.S.?

  Profit and output choice of incumbent firm

How much does it choose to sell when it enters the market? What is the resultant market price? How much does each of the two firms earn in profits?

  What should be considered as the cost of the energy

Jennifer contemplates installing certain new machines that will reduce the labor time required on certain operations. These will increase the connected load by 10hp, but since they will operate only on certain special jobs, will add only 100 kWh p..

  Impact on short-run phillips curve

Explain what happens to the position of the nation's short-run Phillips Curve if the following events occur:

  Describe the types of trade barriers their implications

Describe the types of trade barriers, their implications on the market and how international organisations act to restrict and regulate these barriers.

  Specialization and gains from trade

Robin and Terry are Stranded on a deserted island and consume two products, coconuts and fish. In a day, Robin can catch 2 fishes or gather 8 coconuts, and Terry can catch 1 fish or gather 1 coconut.

  What steps can leaders take to prepare followers for change

What steps can leaders take to prepare followers for change? How exactly does readiness for change impacts resistance for change and the likely success of change initiatives?

  What gap-inflationary or recessionary-will economy face

An economy is inlong-run macroeconomic equilibrium when each of the followingaggregate demand shocks occurs. What kind of gap-inflationaryor recessionary-will the economy face after the shock

  What is the major difference between a tariff and a quota

What is the major difference between a tariff and a quota? If you were the government, which one would you do when looking at imports?

  Elucidate why the us would subsidize the short run

Elucidate why the U.S. would subsidize the short run cost of production for tobacco farmers in foreign countries.

  Calculating rate of growth in fuel costs

It costs $2600 to insulate a factory. Next year, the fuel savings will be $220. Every year after this, the expense of fuel is expected to increase by the rate g.

  Advantage according to the classical model

Determine the comparative advantage according to the classical model. Is the classical model's prediction of comparative advantage consistent with the comparative advantage in the real world given by the above example?

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