Determine the post war rental rate, Microeconomics

Consider two hypothetical nations, Solowia and Growia, which are defeated in wars. These two nations were suffered from wars differently; the damage is on capital stock in Solowia, while the damage is on human lives (and thus the number of workers) in Growia. Complete the table below for the effects (direction only, not size, such as "increased", "decreased", "unchanged", and "ambiguous") of war damage on

i. Post-war (immediately after the war) aggregate output level, Y

ii. Post-war output per worker level, y

iii. Post-war wage of labor, w (hint: it is determined by marginal product of labor)

iv. Post-war rental rate, r (hint: it is determined by marginal product of capital)

v. Post-war growth rate of output per worker

in relative to pre-war levels and rates in Solowia and Growia respectively. Then, support your answer in words and/or figure. We assume that the Solowia and Growia were at their steady states before the war and there have been no changes in the savings rates, depreciation rates, and population growth rates. We disregard exogenous technological progress (g=0).

 

Solowia

Growia

i. post-war aggregate output level, Y

 

 

ii. post-war output per worker level, y

 

 

iii. post-war wage of labor, w

 

 

iv. post-war rental rate, r

 

 

v. post-war growth rate of output per worker

 

 

Posted Date: 3/7/2013 4:23:52 AM | Location : United States







Related Discussions:- Determine the post war rental rate, Assignment Help, Ask Question on Determine the post war rental rate, Get Answer, Expert's Help, Determine the post war rental rate Discussions

Write discussion on Determine the post war rental rate
Your posts are moderated
Related Questions
During the 1990s, technological advance reduced the cost of computer chips. Explain, with the use of supply and demand diagrams, how the following markets are affected in terms of

Suppose that the total revenue function of a firm is given by TR(q) = 120q - 2q^2, where q is the level of output. Find the level of output q that will maximize the firm’s total re

Once the organization has decided to move forward with the development of a new or modified system, it is time to determine what tasks are necessary to move the project from initia

Mathematical Presentation of Utility maximisation: Consumer's objective is to maximise her utility by solving UMP. To solve UMP, we set the Lagrange function of the correspond

boumal''s single product modelwith out advertisment


Consider the following flow (in thousands of people) between the various labour market states in a particular month:

Organic biochemistry is really as well as biochemistry. This is because the as well as atom is the central source of all existing creature's substances. 8 protons and 8 electro

Differentiate between real and nominal variables.  In economics, the distinction among nominal and real numbers is often made. Nominal variables -- like nominal wages, interest

Risk Neutral - A person is a risk neutral if they show no preference between certain, and an uncertain income with the same expected value.