1. Assume individual's utility flow function takes form: u(c) = log(c), and the productionfunction takes form: Y(t) = AK(t) + BL(t). Describe the physical capital accumnlationequation and obtain the GDP growth rate in the following economy:(a) RCK economy(b) OLG economy

The individual utility function is the study of the individual people under society that to choose…

Answered: 1. Assume individual's utility flow…

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter17: Economic Growth: Resources, Technology, Ideas And Institutions

Section: Chapter Questions

Problem 6WNG

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Write the production function (human capital (H) being included in TFP) and explain the content of the each factor of production. Write the logarithmic form of this production function. It is observed that in a country in a given period of 20 years the average GDP growth rate has been 4%. However, it is observed that in this period the average GDP growth rate is 5% in the first 5 years and 3% in the last 5 years. How this difference in the average growth rates might be explained? In other words, why is the average GDP growth rate higher in the first 5 years than the average growth rate of the last 5 years?
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The relation between technology and the quantity of factor inputs to Real GDP is specified by the production function. O True O False Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.
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1. Assume individual's utility flow function takes form: u(c) = log(c), and the production function takes form: Y(t) = AK(t) + BL(t). Describe the physical capital accumnlation equation and obtain the GDP growth rate in the following economy: (a) RCK economy (b) OLG economy