User Account

All Pages

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

  Write down the formula for the consumer income

Suppose the consumer/worker values two things: a consumption good C and leisure L. Suppose that there are 24 hours in a day and the consumer/worker has a utility function U (C, L) = ln C + L The price of consumption is P and the wage rate is w: Yo..

  Illustrate what accounting tools also reports would you use

Illustrate what accounting tools also reports would you use. Use the Library and internet to re-explore value chain management.

  Explore how a firm determines the optimal scale of a plant

Explore how a firm determines the optimal scale of a plant for a given rate of output and why this determination relates to longer run strategies versus current operations. Also, discuss the differences between economies of scale and economies of ..

  Assume that the pure expectations hypothesis for interest

1-year T-bill rates are expected to steadily increase by 150 basis points per year over the next 6 years. Determine the required interest rate on a 3-year T-bond and a 6-year T-bond if the current

  Illustrate what sectors of the economy are likely to expand

Illustrate what sectors of the economy are likely to expand or recover in the near future. Illustrate what sectors may be the most vulnerable in the next year.

  Do you think business cycles would exist, or be as severe

Do you think business cycles would exist, or be as severe, if these economic statistics were not reported on a regular basis or at all?  Why or why not?

  What is the role of advertising in each of the four market

Brand names can be important to the success of a firm in some industries. Consider industries that demonstrate monopoly, monopolistic competition, oligopoly, and perfect competition. What is the goal of creating a brand name for each of these mark..

  Suppose that the interest rates in the us and germany are

suppose that the interest rates in the u.s. and germany are equal to 5 that the forward one year value of the euro is

  What is the liquidity premium on the four-year treasury

The Wall Street Journal reports that the rate on three-year Treasury securities is 5.25 percent and the rate on four-year Treasury securities is 5.50 percent. The one-year interest rate expected in three years

  Explain the buffett rule

Determine your interpretation as to whether or not capital gains taxes should be increased or decreased? Should general income taxes be increased or decreased?

  Determine the amount of the loan

Christy maintains her inventory levels through borrowing cash on daily basis from bank. She estimates demand for cash for the coming year will be $17,000 per day.

  Determine initial levels of real gdp

In the economy of Cape Despair, subsistence real wage rate is $15 an hour. Whenever real GDP per hour increase above $15 the population grows,

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd