The expression for total output and the dynamics of capital per worker are given by the following expressions: Y = AKᵃL¹⁻ᵃ Δk = sy - k , where A is the exogenous Solow residual, y is output per worker, and is the depreciation rate of capital.(a) Using the information given above, find the fundamental Solow equation. Find an expression for steady-state capital per worker. (b) What happens to steady-state capital if the depreciation rate goes up? (c) Suppose that this economy consists of two types of households: laborers and capitalists. Capitalists own all the capital stock K and are paid a rental rate equal to the marginal product of capital. Find an expression for their share of national income. (d) Assume that laborers save none of their income. If capitalists save 30% of their income, the parameter α = 0.3, and the parameter δ = 0.1, what is the aggregate saving rate s? Will income inequality between capitalists and laborers worsen over time?
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Business, 22.06.2019 17:30
Google started as one of many internet search engines, amazon started as an online book seller, and ebay began as a site where people could sell used personal items in auctions. these firms have grown to be so large and dominant that they are facing antitrust scrutiny from competition regulators in the us and elsewhere. did these online giants grow by fairly beating competition, or did they use unfair advantages? are there any clouds on the horizon for these firms -- could they face diseconomies of scale or diseconomies of scope as they continue to grow? if so, what factors may limit their continued growth?
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Business, 22.06.2019 18:50
Dominic is the founder of an innovative "impromptu catering" business that provides elegant, healthy party food and decorations on less than 24 hours' notice. the company has grown by over 150 percent in the past year. dominic credits some of the company's success to studying the strategies of prominent social entrepreneurs, such as wikipedia's jimmy wales. what can dominic do to exemplify the social entrepreneurship model?
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Business, 23.06.2019 00:00
Which of the following statements is true about an atm card?
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Business, 23.06.2019 02:00
One country has a comparative advantage over another country in the production of a good if ithas a curved production possibilities curve and the other country has a linear production possibilities curve.has lower fixed costs than the other country. has a linear production possibilities curve and the other country has a curved production possibilities curve.is a lower opportunity cost producer of the good.
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The expression for total output and the dynamics of capital per worker are given by the following ex...
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