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).




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
Following the tremendous success of the 'Matthew Hayden Cookbook', we are once more welcomed into the home-and, more importantly, the kitchen!- of Australia's gourmet cricketer for

INTERNATIONAL MONETARY FUND: The important objectives before the Fund presently are as follows: • To promote international cooperation; • To facilitate the expansion and ba

1. Nonwage Determinants of Labor Supply Suppose that two jobs are exactly the same except that one is performed in an air-conditioned workplace. How could you measure the value wor

causes for emergency of monopoly

Employment The calculations of human input in the production procedure. In the United States, there are two major measures of employment, as determined by the Bureau of Labor

economic problems are faced by all types of economies but they are dealt with differently in different types of economies.discuss

CleanAuto Inc. has four workers: Julie, Ian, Devon, and Thomas. CleanAuto Inc. provides two services: interior vacuuming and exterior wash. Julie can perform each of these tasks in

illustrate and discuss the implications of various markets structures(competitive and non-competitive) for price dertimation

what will be the effect on price and quantity when supply and demand changes in different directions but same magnitude?

Warehousing Facilities: These should be expanded in important commercial centres abroad, specially for fast-moving consumer goods. Nowadays, foreign buyers are reluctant to keep