(a) Time is continuous and the production function of the economy is given by (1) Yt = (Kt)" (At Nt ) ¹-a Total factor productivity evolves according to Ao such that = g A (2) where the growth rate of technological progress g is exogenous. Population grows at an exogenous rate n according to (3) Find an expression for the growth rate of (i) output per capita (Y₁ / Nt) and (ii) output per effective worker (Y₁ / (A+Nt) ). At = egt Ntent No with No 1 such that = When is the growth rate of (ii) equal to zero? Ń N = n

(a) Time is continuous and the production function of the economy is given by (1) Yt = (Kt)" (At Nt ) ¹-a Total factor productivity evolves according to Ao such that = g A (2) where the growth rate of technological progress g is exogenous. Population grows at an exogenous rate n according to (3) Find an expression for the growth rate of (i) output per capita (Y₁ / Nt) and (ii) output per effective worker (Y₁ / (A+Nt) ). At = egt Ntent No with No 1 such that = When is the growth rate of (ii) equal to zero? Ń N = n

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

If the real GDP growth rate in the UK is 2.0% on average, then the level of real GDP will be doubled in ____ years. 70 7 23 35
If real GDP per capita for Nelsonville grew from $8 trillion to $16 trillion between 2000 and 2020, then which of the following was the approximate annual growth rate? A) 8% B) 5.5% C) 20% D) 7.5% E) 3.5%
A country produces output using a production function: Y = F(K, L) = AxK0.5 L0.5 where L is labour, K is capital and A is total factor productivity. Prove that this function exhibits constant returns to scale. Assume that A = 3 and its growth rate is zero. The country has a population growth of 1.5% per year (0.015) and capital depreciates at a rate of 10% (0.10) per year. If the country saves 30% (0.3) of national income, find the steady state levels of capital per worker, as well as consumption and income per worker in the Solow growth model corresponding to this country. What would be the rate of growth of GDP per capita in steady state? Calculate the “Golden Rule” level of capital stock in steady state. Is this economy dynamically efficient?
The economy grows 3.59 percent per year over a 20 year period. 0.67 percent per year is attributed to labor and 1.49 percent per year is attributed to capital. Therefore, enter your response here percent per year must be due to technological progress. (Enter your response rounded to two decimal places.)
9 Based on the production function Y = AKaG1-a (with G representing public expenditure, and the remaining variables and parameters representing usual values), show, using the necessary assumptions the value of the tax amount that maximizes the economic growth rate. Then, represent graphically the situation.
Turkish growth performance in 1980’s Explain why in the period of 2014-2018 the TFP contribution to GDP growth diminished to 0.8 percentage points the lowest scored observed in Turkish economic history while Log K is at 7.2%, a very high growth score?
What is meant by economies of scale and what is the importance of this concept toeconomic growth?
Suppose that the production function of a company is given by q = qL^2 · qC and that the amount of labour qL and the amount of capital qC are functions of time t. At time t = 2, we know that qL = 9 andqC =8 and that the growth rateof qL is equal to 2 and the growth rate of qC is equal to 8. Find the growth rate of the production q at that moment.
The current population of the United States is 327.2 million with 2.2% of the population is engaged in R&D at an efficiency rate of 1/375 per million persons per year. If R&D is the only source of total-factor productivity growth what is the growth rate of total factor productivity in the United States?
Question 2Assume production function is given by:Y= K(1/2) L(1/2)a. Write the production function in per worker terms (y=f(k))b. Assume that the per worker level of capital in the steady state is 4, the depreciation rate is 5% per year, and population growth is 5% per year. Does this economy have “too much” or “too little” capital? How do you know? [Show your work].
Consider an economy described by the production function: Y = F(K, L) = K^0,3L^0,7 A. What is the per-worker production function? B. Assuming no population growth or technological progress, find the steady-state capital stock per worker, output per worker, and consumption per worker as a function of the saving rate and the depreciation rate.
The Accelerated and Shared Growth Initiative for South Africa (AsgiSA) was launched by Deputy President Phumzile Mlambo-Ngcuka in February 2006. After research and discussion with stakeholders, government identified six “binding constraints on growth” that needed to be addressed so as to progress in its desire for shared growth and to achieve its target of halving unemployment and poverty between 2004 and 2014. This could be achieved if the economy grew at an average rate of at least 4.5% in the period to 2009, and by an average of 6% in the period 2010 to 2014.These binding constraints were: deficiencies in government’s capacity the volatility of the currency low levels of investment infrastructure and infrastructure services shortages of suitably skilled graduates, technicians and artisans insufficiently competitive industrial and services sectors and weak sector strategies inequality and marginalisation, resulting in many economically marginalised people being unable to…