The table below represents national macroeconomic data for Year 1 and Year 2. Year Y K 1 4000 1500 X 4200 1500 y Where x = 109 and y=196. Suppose that the production function is given by y-AKO.3N0.7. What is the value of TFP in year 1?
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- Q) consider the harrod-domar model in which depreciation and the population growth rate are 2% and 3% respectively. what fraction of income must be saved in order for income to double in 10 years if c=3 Solve it nowC I G NX Price Yr1 1000 156 560 52 4 Yr2 1300 159 600 52 5 Yr3 2000 169 690 53 6 Yr4 2900 180 880 53 7 -What will the percent rate of change in real GDP be from year 1 to year 2, from year 2 to year 3, and from year 3 to year 4. (round to the whole number for all calculations and final answers) -State how long it will take for real GDP to double in size.Suppose that the economy is summarized by the following: Technology (Production Function): Yt = 10 (Kt)0.3 (Lte)0.7 Consumption function: Ct = 0.8Yt Depreciation rate: 8% (i.e. δ= 0.08) Population growth: 2% (i.e. n = 0.02) Technological growth: 4% (i.e. g = 0.04) 1. Assuming that in 2013 the US economy is in the steady state and L2013 = Le2013 = 8, what is the value of ke2014, ye2014, ce2014 , k2014, y2014, and c2014 ?
- The rate of increase of real income per capita in a country has been calculated as 4000 / (t + 1) ln2, t year. Since real income per capita is 5000 TL at the beginning (when t = 0), what is real income per capita in the country after 7 years?how do you calculate the precentage change in production when valued at 2018 prices?Suppose an economy begins in steady state. By what proportion does per capita GDP change in the long run in reponse to each of the following changes? Production function is Y=AK^1/3L^2/3 a. Investment rate doubles b. depreciation rate falls by 10% c. Productivity level rises by 10% d. Earthquake destrys 75% of the capital stock e. Generous immigration policy lead the population to double
- I have worked on 1-3, but am stuck on 4-6, could you please assist? Suppose that the economy is summarized by the following: Technology (Production Function): Yt = 10 (Kt)0.3 (Lte)0.7 Consumption function: Ct = 0.8Yt Depreciation rate: 8% (i.e. δ= 0.08) Population growth: 2% (i.e. n = 0.02) Technological growth: 4% (i.e. g = 0.04) QUESTIONS: Find the steady state (long run) equilibrium values of kte, yet, and cet. Show graphically what would be the effect of a increase of the saving rate to s=0.4? Show graphically what would be the effect of an increase in population growth to 0.04? Assuming that in 2013 the US economy is in the steady state and L2013 = Le2013 = 8, what is the value of ke2014, ye2014, ce2014 , k2014, y2014, and c2014 ? Use your answer to e) to calculate the growth rate of ket, yet, cet , kt, yt, and ct Based on your answers to the previous questions and on your knowledge of how the Solow growth model works, explain what policies should a less-developed country…7. 1. Consider a neoclassical growth economy described by the following.•Yt = K0.3t ·L0.7t (aggregate production function)•s = 0.35 (saving rate)•δ = 0.10 (depreciation rate)•n = 0.01 (population growth rate)•L1 = 120 (initial population)•K1 = 160 (initial capital stock)•g = 0 (technological growth rate)Compute K, Y , k, y, and c for the first three periods. Please report numerical answersto two decimal points. (a) K1 = ; Y1 = ; k1 = ; y1 = ; c1 =(b) K2 = ; Y2 = ; k2 = ; y2 = ; c2 =(c) K3 = ; Y3 = ; k3 = ; y3 = ; c3 =Consider an economy for which y = Ake with the parameter values as listed: A=19, s=0.4, n=0.3, d=0.2 ,0 =0.5. Compute the steady state value for k. As a first step, graphically depict an economy in steady state. Be sure to label the axes, all lines, and steady state for k, y, c, and i . Suppose that productivity A decreases. Include on your graph the impact this will have on the economy. Be sure the direction of change is clear. The graph should depict the original and new steady states and clearly indicate which is which.
- 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].Forecasts for Sa’s economic growth rate have been droppingconsistently in 2023, from 1.2% year on year at the start of thefirst quarter to 0.7% in March, 0.6% in April and now 0.4% inthe outcome of the May survey (all Bloomberg).A more recent survey from Reuters in May places the outlookfor economic growth even lower, at 0.2% for 2023.Market perceptions of the global outlook have also dimmed, withChina’s economic recovery proving weaker than anticipatedafter its 2022 lockdowns, as recent production data disappoints,including that on household spending, investment and tradeactivity.Global trade defragmentation is also weakening sentiment, withrisks of limitations on trade competitiveness growing. Theseconcerns, along with US recession fears and disappointment overChina’s ability to lead the global economy stronger in 2023, haveweakened sentiment, reflecting in the recent fall in oil prices.Markets had expected a ramp-up in economic activity in Chinain the second quarter, but has also…Forecasts for Sa’s economic growth rate have been droppingconsistently in 2023, from 1.2% year on year at the start of thefirst quarter to 0.7% in March, 0.6% in April and now 0.4% inthe outcome of the May survey (all Bloomberg).A more recent survey from Reuters in May places the outlookfor economic growth even lower, at 0.2% for 2023.Market perceptions of the global outlook have also dimmed, withChina’s economic recovery proving weaker than anticipatedafter its 2022 lockdowns, as recent production data disappoints,including that on household spending, investment and tradeactivity.Global trade defragmentation is also weakening sentiment, withrisks of limitations on trade competitiveness growing. Theseconcerns, along with US recession fears and disappointment overChina’s ability to lead the global economy stronger in 2023, haveweakened sentiment, reflecting in the recent fall in oil prices.Markets had expected a ramp-up in economic activity in Chinain the second quarter, but has also…