Business, 10.11.2019 07:31 datboyjulio21
In the united states, the capital share of gdp is about 3 percent, the average growth in output is about 3 percent per year, the depreciation rate is about 4 percent per year, and the capital-output ratio is about 2.5. suppose that the production function is cobb-douglas, so that the capital share in output is constant, and that the united states has been in a steady state.
a. what must the saving rate be in the initial steady state?
b. what is the marginal product of capital in the initial steady state?
c. suppose that public policy raises the saving rate so that the economy reaches the golden rule level of capital. what will the marginal product of capital be at the golden rule steady state? compare the marginal product at the golden rule steady state to the marginal product in the initial steady state. explain.
d. what will the capital-output ratio be at the golden rule steady state?
e. what must the saving rate be to reach the golden rule steady state?
Answers: 2
Business, 22.06.2019 19:50
Joe pays ann to mow his lawn and ann mows vanna's lawn by mistake. vanna peers out her window and sees ann mowing, yet says nothing to ann about her mistake since vanna needs to have her lawn mowed. when ann approaches vanna for payment, vanna refuses, arguing that she never asked ann to mow her lawn. under these circumstances, ann can recover payment from vanna under:
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Business, 22.06.2019 21:40
Which of the following is one of the main causes of inflation? a. wages drop so workers have to spend a higher percentage of income on necessities. b. demand drops and forces producers to charge more to meet their costs. c. rising unemployment cuts into national income. d. consumers demand goods faster than they can be supplied.
Answers: 3
Business, 23.06.2019 08:20
According to the balanced budget multiplier, an increase in government spending of $10,000 that is financed by an increase of $10,000 in taxes will have what effect on the economy when mpc is 0.80?
Answers: 1
In the united states, the capital share of gdp is about 3 percent, the average growth in output is a...
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