Macroeconomics
10th Edition
ISBN: 9781319105990
Author: Mankiw, N. Gregory.
Publisher: Worth Publishers,
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Question
Chapter 8, Problem 3PA
(a)
To determine
The production function per worker.
(b)
To determine
The steady state capital stock per worker, output per worker and consumption per worker.
(c)
To determine
The steady state capital stock per worker, output per worker and consumption per worker at different savings rates.
(d)
To determine
The marginal product of capital.
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Students have asked these similar questions
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.
Question 3Consider an economy described by the production function:Y = F(K, L) = K0.3 L0.7
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.c. Assume that the depreciation rate is 10 percent per year. Make a table showing steadystate capital per worker, output per worker, and consumption per worker for saving ratesof 0 percent, 10 percent, 20 percent, 30 percent, and so on. (You will need a calculator with an exponent key for this.) What saving rate maximizes output per worker? What saving rate maximizes consumption per worker?
Question 9.
Suppose that an economy has the following production function:
Y = F(K, L) = K0.210.7, where Y is output, K is capital stock and L is the labour force.
a. What is the per-worker production function?
b. Assuming no population growth or technological progress, find steady- state
capital stock per worker, steady-state output per worker, and steady-state
consumption per worker as a function of the saving rate and the depreciation rate.
c. Assuming that the depreciation rate is 10 percent per year. What level of capital
stock per worker and saving rate maximize consumption per worker?
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