Question

If the share of GDP used for capital goods is 0.12, the growth rate of productivity...

If the share of GDP used for capital goods is 0.12, the growth rate of productivity is 0, the growth rate of population is 0.01, the depreciation rate is 0.01, the initial capital/output ratio is 4.6, and the elasticity of GDP with respect to capital is 0.2, then what is the steady-state value of the capital/output ratio? Use 2 decimal places.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

One correction in share of GDP used line --- = investment/GDP = saving / GDP = sY/Y = s = 0.12

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
If the share of GDP used for capital goods is 0.12, the growth rate of productivity...
If the share of GDP used for capital goods is 0.12, the growth rate of productivity is 0.09, the growth rate of population is 0.02, the depreciation rate is 0.01, the initial capital/output ratio is 2.01, and the elasticity of GDP with respect to capital is 0.3, then what is the steady state value of the capital/output ratio? Use 2 decimal places.
1) if the share of GDP used for capital goods is 0.33, the growth rate of...
1) if the share of GDP used for capital goods is 0.33, the growth rate of productivity is 0.04, the growth rate of population is 0, the depreciation rate is 0.04, the initial capital/output ratio is 3.23, and the elasticity of GDP with respect to capital is 0.1, then what is the steady state value of the capital/output ratio? Use 2 decimal places. 2) If the share of GDP used for capital goods is 0.17, the growth rate of productivity...
If the share of GDP used for capital goods is 0.02, the growth rate of productivity...
If the share of GDP used for capital goods is 0.02, the growth rate of productivity is 0, the growth rate of population is 0.03, the depreciation rate is 0.02, the initial capital/output ratio is 1.67, and the elasticity of GDP with respect to capital is 0.3, then what is the growth rate of the GDP per capita? Use three decimal places.
In a country called Nubaria, the capital share of GDP is 40 percent; the average growth...
In a country called Nubaria, the capital share of GDP is 40 percent; the average growth in output is 4 percent per year; the depreciation rate is 5 percent per year; and the capital-output ratio is 2.5. Suppose the production function is Cobb-Douglas and Nubaria is in a steady state. What is the saving rate in the initial steady state? What is the marginal product of capital in the initial steady state? What is the economic interpretation of this number?...
US Steady State and Golden Rule: In the US, the capital share of GDP is 45%,...
US Steady State and Golden Rule: In the US, the capital share of GDP is 45%, the average annual growth rate of GDP is 4%, the depreciation rate is 5% per year, and the capital-output ratio is estimated to be 3. Assuming, a constant returns production function (i.e., Cobb-Douglas) and that the US is in a steady state, answer the following: a) Find the savings rate. b) Find the MPk c) Find the MPk if US moved to the Golden...
Portugal has the following per-worker production function: y=3k^0.05 Depreciation rate is 0.08, population growth rate is...
Portugal has the following per-worker production function: y=3k^0.05 Depreciation rate is 0.08, population growth rate is 0.02. Saving is S=0.2Y, where S is national saving and Y is national output. (a) what are the steady state value of capital-labour ratio, output per worker and consumption per worker? (b) Suppose that national saving increases to 0.4, what are the steady state value of capital-labour ratio, output per worker and consumption per worker? (c) Suppose depreciation rate increases to 0.20, what are...
Suppose the share of GDP that goes to capital is 0.30 while the share that goes...
Suppose the share of GDP that goes to capital is 0.30 while the share that goes to labour is 0.70. Total factor productivity grows at a rate of 1.5 percent per year, population grows at a rate of 1.1 percent per year and total output grows at a rate of 4.3 percent per year. What is the rate of capital per worker?
Use the Solow-Swan model to explain what would happen to steady state capital per effective worker...
Use the Solow-Swan model to explain what would happen to steady state capital per effective worker resulting from: a. A decrease in the population growth rate. b. An increase in labor productivity. c. An increase in the investment share of GDP.
Consider the simple version of the Solow model, with no population growth and no technological change....
Consider the simple version of the Solow model, with no population growth and no technological change. Suppose that, due to an aging capital stock, an economy experiences a sudden increase in its depreciation rate. a. Show the impact of an increase in the depreciation rate to ? ′ > ? on the diagram. b. What happens to the steady-state level of capital? _______ c. What happens to the level of output in the steady state? _______ d. Assuming that the...
Suppose an economy described by the Solow model is in a steady state with population growth...
Suppose an economy described by the Solow model is in a steady state with population growth n of 1.8 percent per year and techno- logical progress g of 1.8 percent per year.Total output and total capital grow at 3.6 percent per year. Suppose further that the capital share of output is 1/3. If you used the growth- accounting equation to divide output growth into three sources—capital, labor, and total factor productivity—how much would you attribute to each source?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT