YIN CNNext questionSuppose that the production function is given byY- 05VR N454where Y is output, Kis capital, and N is the number of workers4Suppose that 60 05 With your favonte spreadsheet software, computesteady-state output per worker and steady-state consumption per worker for s0, 801, a02, s1Graph the steady-state level of output per worker and the steady-state level ofconsumption per worker as a function of the saving rate251) Using the multipoint curve drawing tool, drawa curve showing therelationship between YIN and the saving rate. Properly label your curve152) Using the multipoint curve drawing tool, draw a curve showing therelationship between CIN and the saving rate. Properly label your curve0.5Although the control ponts for your multpownt curves do not have to be exacttry to plot them as accurately as possible01 02 03 a'4 os o6 07 os 09Saving rate,At what saving rates are YIN and CIN maximized?After plotting the final point of your multipoint curvepress the Esc' key on your keyboard to end the ine.YIN is maximized at a saving rate ofO A. 0.5, and CIN is maximized at a saving rate of 1.O B. 1, and C/IN is maximized at a saving rate of 1.OC. 05, and CIN is maximized at a saving rate of 05.

Given production function Y=0.5K*N δ=0.05s=0s=0.1s=0.2s=1

YN CN Next question Suppose that the production function is given by 0 5VR N. where Y is output Kis capital and Nis the number of workers Suppose that &0.05 With your favorite spreadsheet software, compute steady-state output per worker and steady state consumption per worker for s 0 s01, 02. 35 Graph the steady-state level of output per worker and the steady-state level of consumption per worker as a function of the saving rate 25 24 1) Using the multipoint curve drawing tool, drawa curve showing the relationship between YIN and the saving rate. Properly label your curve 2) Using the multpoint curve drawing tool, draw a curve showing the relationship between CIN and the saving rate. Properly label your curve 15 05 Although the control ponts for your multipont curves do not have to be exact try to plot them as accurately as possible 6 01 02 03 04 Savn At what saving rates are YIN and CIN maximized? After plotting the final po press the Esc'key on yo YIN is maximized at a saving rate of O A. 0.5, and CIN is maximized at a saving rate of 1. OB. 1, and CIN is maximized at a saving rate of 1. OC. 05, and CIN is maximized at a saving rate of 0 5

YN CN Next question Suppose that the production function is given by 0 5VR N. where Y is output Kis capital and Nis the number of workers Suppose that &0.05 With your favorite spreadsheet software, compute steady-state output per worker and steady state consumption per worker for s 0 s01, 02. 35 Graph the steady-state level of output per worker and the steady-state level of consumption per worker as a function of the saving rate 25 24 1) Using the multipoint curve drawing tool, drawa curve showing the relationship between YIN and the saving rate. Properly label your curve 2) Using the multpoint curve drawing tool, draw a curve showing the relationship between CIN and the saving rate. Properly label your curve 15 05 Although the control ponts for your multipont curves do not have to be exact try to plot them as accurately as possible 6 01 02 03 04 Savn At what saving rates are YIN and CIN maximized? After plotting the final po press the Esc'key on yo YIN is maximized at a saving rate of O A. 0.5, and CIN is maximized at a saving rate of 1. OB. 1, and CIN is maximized at a saving rate of 1. OC. 05, and CIN is maximized at a saving rate of 0 5

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Exercise 4: Growth and capital over-accumulationSuppose two countries, A and B, with the same production function Y = KαL1−α. Thevalue of α is 0.30, the growth rate of population is 2% and the depreciation rate is 5%.a) Show that with price-taking firms the share of labor must be 1 − α.b) Compute the stock of capital, output and consumption per unit of labor in the steadystate if the savings rates were 25% for country A and 35% for country B.c) Compare both economies to the Golden Rule.d) Explain what would happen to both countries if suddenly their savings rate becamethe Golden Rule savings rate.
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
1. Country A and B both have the production functionY = F (K, L) = K ½L ½or Y = K0.5 L0.5 a) What is the per-worker production function, y= f (k)? Please make sure to write specificfunctional form of the per-worker production function. b) Assume that neither country experiences population growth nor technological progressand that 4 percent of capital depreciates each year. Assume further that country A saves 24percent of output each year and country B saves 16 percent of output each year. Using youranswer from part a) and the steady-state condition, find the steady-state level of capital perworker for each country. Then find the steady-state levels of income per worker for eachcountry and steady-state level of consumption per worker for each country.
suppose the production formula is given by yt= kt ^1/3 where y is the output per worker and k is the capital per worker. futhermore assume that the saving rate is exogenous and the capital deprecitates at delta rate. if the sum of both deprectiation rate and saving rate equals 1, answer the questions below 1. find the steady state values of capital, output, investments and consumption as functions of the saving rate only? 2. in a diagram show the steady state value values in a part (a)?
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 d. Earthquake destrys 75% of the capital stock e. Generous immigration policy lead the population to double Fast answer
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