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

Market intervention by government Government intervenes in various degrees in different countries. Free economy is almost non-existent in the modem world. In real world, the form,

Factors determine the price elasticity of supply: The price elasticity of supply varies widely across different products. Some products have more leastic supply, while others

1. Ayanna grows herbs. Last year she grew 2,000 pounds of herbs in a year while using 250 square feet of land and 1 worker. This year she doubled her land to 500 square feet, doubl

Define the term Entrepreneurship Entrepreneurship :   An entrepreneur is an individual who takes risks and organises the factors of production to make a product and therefore

Suppose that the U.S. Department of Agriculture (USDA) administers the price floor for cheese, set at $0.17 per pound of cheese. (The price floor is officially set at $16.10 per hu


which is more dense-Rubidium or Rubidium Hydride?

TC = Q3 – 8Q2 + 68Q + 4, get the median and mode

what are the main properties and assumptions of indifference curve