Question

Suppose the production of a country is Y equals K to the power of 0.2 end exponent left parenthesis E L right parenthesis to the power of 0.8 end exponent. And its depreciation rate is 0.07, population growth rate is 0.02, technology growth rate is 0.01, saving rate is 0.30. (a) What is the long-run growth rate of per worker output? (Enter decimals. Numbers only) 0.01 (b) What is the long-run growth rate of aggregate output? (Enter decimals. Numbers only) 0.03 (c) (Fill in blanks) If the government want to increase the per-effective-worker consumption permanently, government should (increase/decrease) saving rate to . This new saving rate should be decimals. Round up to TWO decimals if needed.

Answer #1

Suppose the production of a country is Y =
K0.2(EL)0.8. And its depreciation rate is
0.07, population growth rate is 0.02, technology growth rate is
0.01, saving rate is 0.30.
Answer the following questions.
(a) What is the long-run growth rate of per
worker output?
(b) What is the long-run growth rate of
aggregate output?

Suppose the production function of a country is Y equals K to
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exponent . And its capital stock is K equals 27 and labor force is
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Consider the Solow growth model. The production function is
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Suppose Canada’s aggregate production function is given by the
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Y = K^1/3 *(AN)^2/3
Variables are deﬁned as they were in class. Suppose the savings
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17. Solow growth The production function in your country is: Y =
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Your economy saves 24% of output each period, and 5% of the
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and 1 unit of capital, and a tech- nology level equal to 1.
a) Write the production function in per-eective-worker terms, so
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A closed economy (NX = 0) without government (G = T = 0) has a
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13. Suppose there is an increase in government spending in a
closed economy. In medium-run such a fiscal policy will cause:
none of the other answers is correct.
ambiguous effects on the neutral real interest rate
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no change in the neutral real interest rate
the neutral real interest rate to rise
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According to Solow model without technological progress, an
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Total utility can be objectively measured in numbers that
indicate usefulness or benefit to the consumer.
____ 2. Consumers should purchase quantities of a good to the
point where MU > P.
____ 3. Voluntary exchange requires that there must be mutual
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____ 4. Points along a budget line represent the maximum
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____ 5. The budget line represents a consumer's preferences
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____ 6. A change in consumer...

What role could the governance of ethics have played
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THE FALL OF ENRON: A STAKEHOLDER FAILURE
Once upon a time, there was a gleaming headquarters
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Once upon a time, there was a gleaming headquarters
office tower in Houston, with a giant tilted "£"' in front, slowly
revolving in the Texas sun. The Enron Corporation, which once
ranked among...

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