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Suppose that an economy's production function is Y=√K √AN where K is capital, N is labor, A is the state of technology, and AN denotes the amount of effective labor in the economy. Suppose that the saving rate, s, is equal to 13%, and that the rate of depreciation, 6, is equal to 12%. Suppose further that the number of workers, 9 grows at e rate of technological progress, 9A. is 2% per year. Given the values of the economy, compute the following: The steady-state value of the capital stock per effective worker is 0.42). (Round your response to two decimal places.) The steady-state value of output per effective worker is (Round your response to two decimal places.) The steady-state value of the growth rate of output per effective worker is%. (Enter your response as an integer) The steady-state value of the growth rate of output per worker is%. (Enter your response as an integer.) The steady-state value of the growth rate of output is % (Enter your response as an integer) Suppose that the rate of growth of workers doubles to 12% per year. Recompute the steady-state values. The steady-state value of the capital stock per effective worker is (Round your response to two decimal places) The steady-state value of output per effective worker is (Round your response to two decimal places) The steady-state value of the growth rate of output per effective worker is. (Enter your response as an integer.) The steady-state value of the growth rate of output per worker is%. (Enter your response as an integer.) The steady-state value of the growth rate of output is % (Enter your response as an integer.) All else constant, people are better off with a lower rate of growth in the number of workers. A True Fabe

Suppose that an economy's production function is Y=√K √AN where K is capital, N is labor, A is the state of technology, and AN denotes the amount of effective labor in the economy. Suppose that the saving rate, s, is equal to 13%, and that the rate of depreciation, 6, is equal to 12%. Suppose further that the number of workers, 9 grows at e rate of technological progress, 9A. is 2% per year. Given the values of the economy, compute the following: The steady-state value of the capital stock per effective worker is 0.42). (Round your response to two decimal places.) The steady-state value of output per effective worker is (Round your response to two decimal places.) The steady-state value of the growth rate of output per effective worker is%. (Enter your response as an integer) The steady-state value of the growth rate of output per worker is%. (Enter your response as an integer.) The steady-state value of the growth rate of output is % (Enter your response as an integer) Suppose that the rate of growth of workers doubles to 12% per year. Recompute the steady-state values. The steady-state value of the capital stock per effective worker is (Round your response to two decimal places) The steady-state value of output per effective worker is (Round your response to two decimal places) The steady-state value of the growth rate of output per effective worker is. (Enter your response as an integer.) The steady-state value of the growth rate of output per worker is%. (Enter your response as an integer.) The steady-state value of the growth rate of output is % (Enter your response as an integer.) All else constant, people are better off with a lower rate of growth in the number of workers. A True Fabe

Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
8th Edition
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter25: Production And Growth
Section: Chapter Questions
Problem 1CQQ
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Subject :- Echonomic

Suppose that an economy's production function is Y=√K √AN where K is capital, N is labor, A is the state of technology, and AN denotes the amount of effective labor in the economy. Suppose that the saving rate, s, is equal to 13%, and that the rate of depreciation, 6, is equal to 12%. Suppose further that the number of workers, 9 grows at 6% per yem rate of technological progress, 9A. is 2% per year. Given the values of the economy, compute the following: The steady-state value of the capital stock per effective worker is 0.42 (Round your response to two decimal places.) The steady-state value of output per effective worker is (Round your response to two decimal places.) The steady-state value of the growth rate of output per effective worker is. (Enter your response as an integer.) The steady-state value of the growth rate of output per worker is %. (Enter your response as an integer.) The steady-state value of the growth rate of output is%. (Enter your response as an integer.) Suppose that the rate of growth of workers doubles to 12% per year. Recompute the steady-state values. The steady-state value of the capital stock per effective worker is (Round your response to two decimal places) The steady-state value of output per effective worker is (Round your response to two decimal places.) The steady-state value of the growth rate of output per effective worker is%. (Enter your response as an integer.) The steady-state value of the growth rate of output per worker is % (Enter your response as an integer.) The steady-state value of the growth rate of output is % (Enter your response as an integer.) All else constant, people are better off with a lower rate of growth in the number of workers. OA True OB. False
Transcribed Image Text:Suppose that an economy's production function is Y=√K √AN where K is capital, N is labor, A is the state of technology, and AN denotes the amount of effective labor in the economy. Suppose that the saving rate, s, is equal to 13%, and that the rate of depreciation, 6, is equal to 12%. Suppose further that the number of workers, 9 grows at 6% per yem rate of technological progress, 9A. is 2% per year. Given the values of the economy, compute the following: The steady-state value of the capital stock per effective worker is 0.42 (Round your response to two decimal places.) The steady-state value of output per effective worker is (Round your response to two decimal places.) The steady-state value of the growth rate of output per effective worker is. (Enter your response as an integer.) The steady-state value of the growth rate of output per worker is %. (Enter your response as an integer.) The steady-state value of the growth rate of output is%. (Enter your response as an integer.) Suppose that the rate of growth of workers doubles to 12% per year. Recompute the steady-state values. The steady-state value of the capital stock per effective worker is (Round your response to two decimal places) The steady-state value of output per effective worker is (Round your response to two decimal places.) The steady-state value of the growth rate of output per effective worker is%. (Enter your response as an integer.) The steady-state value of the growth rate of output per worker is % (Enter your response as an integer.) The steady-state value of the growth rate of output is % (Enter your response as an integer.) All else constant, people are better off with a lower rate of growth in the number of workers. OA True OB. False
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