Determine the post war rental rate, Microeconomics

Assignment Help:

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

 

 


Related Discussions:- Determine the post war rental rate

Rational self-interest, Discuss the impact of rational self-interest on eac...

Discuss the impact of rational self-interest on each of the following decisions

Surplus- economics, Surplus: Anysector or agent in economy (business, hous...

Surplus: Anysector or agent in economy (business, householdor government) experiences a surplus when its income surpasses its expenditure. Surplus, Economic: For the economy

Production, explain 6 factors that determine volume of production

explain 6 factors that determine volume of production

Advertising budget, Analyse the method by which a firm can allocate the giv...

Analyse the method by which a firm can allocate the given advertising budget between different media for advertisement?

Richrdian model, my assignment is about richardian model and wanna ask you ...

my assignment is about richardian model and wanna ask you about few questions

Opportunity cost, discus how opportunity cost influence supplier''s decisio...

discus how opportunity cost influence supplier''s decision to supply labour

Select demand schedule and a supply schedule for apples, •Create a demand s...

•Create a demand schedule and a supply schedule for your product.. •Using these schedules, draw a demand curve and a supply curve using PowerPoint or Excel. Use these to determine

The hypothesis of rational expectations, The Hypothesis of Rational Expecta...

The Hypothesis of Rational Expectations : In the General Theory (Keynes, 1936) we noted that the state of expectations was taken as given. There was, in addition, explici

Elasticity of demand, elasticity of demand for demand function Q=10-2p for ...

elasticity of demand for demand function Q=10-2p for decrease in price from Rs 3 to Rs 2

Write Your Message!

Captcha
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