Solow growth model

Assignment Help Business Economics
Reference no: EM136762

Q. Reflect on the Solow Growth Model by means of technology given by Y = zF(K, N) = K^(1/2)N^(1/2), its savings rate is 0.2 moreover its depreciation rate is 0.1. Together the population growth as well as the technological growth is 0. Notify that the lower case
letters denote per capita variables e.g. y=Y/N).

(a) Elucidate the steady state values of c, y, k and i?

(b) Elucidate the values of y and k only if economy operates at "Golden Rule" level of capital accumulation?

(c) Elucidate the saving rate which you've to impose also the level of c? Envision that you want to drive this country in the "Golden Rule" levels of k and y.

(d) Elucidate what would be the immediate and long run effects on c, k, and y? Explain by drawing the path of these variables. Consider that you impose the new saving rate.

Reference no: EM136762

Questions Cloud

Monopolistic competition oligopoly and monopoly. : In economic terms, when the wage rate increases we sometimes see the number of hours worked by individuals decrease now.
Strategic advice in todays economy : In your opinion, are the resources you devote to your education a form of consumption or a form of investment.
Firms cost structure : From what you know about these firms' cost structure, what is the highest possible price per unit that could be existing as the market price in the long run equilibrium.
Solow growth model by means of technology : Elucidate what would be the immediate and long run effects on c, k, and y. Explain by drawing the path of these variables. Consider that you impose the new saving rate.
Solow growth model : Elucidate what would be the immediate and long run effects on c, k, and y. Explain by drawing the path of these variables. Consider that you impose the new saving rate.
Sales change if the company increases computer price : How much will computers sales change by if the company increases computer price by $100 from $1,000 to $1,100.
Tit-for-tat strategy : Illustrate the way in which market forces shape the organizational responses using a range of examples.
Describe maximizing utility : How many DVD's will she have to sell to keep the store open for an extra hour to make profit, if each DVD is $12.
High degree of monopoly power : Is it a local, regional or national monopoly. What are some of the Barriers to Entry into this industry.

Reviews

Write a Review

 

Business Economics Questions & Answers

  Supply and demand model

Use supply and demand model to explain the dramatic rise in the price of a college education.

  Rashid''s budget constraint

Explain why monopolistically competitive firms frequently prefer nonprice competition to price competition.

  Advantage to society to correct the externality

Jane wants to buy a beautiful doll as a gift for her sister's birthday. What is the advantage to society to correct the externality?

  Accounts receivable payments

A company's cash sales for the month are $200,000 and its accounts receivable payments for the month are $100,000. What is its total incoming cash flow.

  The town of cuomoville

If planned aggregate expenditure (PAE) in an economy equals 2,000 + 0.48Y and potential output (Y*) equals 4,000, then this economy.

  The industry is confronted with government regulations

Assume that the industry wants to expand and has to make some long-term capital budgeting decisions. Now the industry is confronted with government regulations to oversee the merger.

  Crowding out effect

The United States is experiencing a recession and Congress decides to adopt an expansionary fiscal policy to stimulate the economy.

  Least two possible solutions to resolve paradox

Why might bad cars drive good cars out of the used-car market. Give at least two possible solutions to resolve this paradox.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Von neumann morgenstern axioms

The consumer is indifferent between B and a lottery ticket with probabilities. Construct a set of von Neumann - Morgenstern utility numbers for the four situations.

  United nation department of economic

The United Nation's Department of Economic and Social Affairs, Population Division, tracks the total number of foreign-born people by nation.

  Utility function for wealth

Now suppose your utility functioin is U= (square root)Wealth. What is the maximum you will pay for the bike check-in now.

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