9. The steady-state level of capital occurs when the change in the capital stock per worker (Ak) equals: a. the population growth rate. b. the depreciation rate. c. the saving rate. d. 0.
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- If Y = A*(K*L)^.5 a. What is the equation for the steady state capital per worker k* in terms of savings rate deprectation rate population growth rate and technology? b. If technology doubles how much does the steady state of capital increase by?Assume that a country's per-worker production is y = k/2, where y is output per worker and k is capital per worker. Assume also that 10 percent of capital depreciates per year (= 0.10) 2 and there is no population growth or technological change. a. If the saving rate (s) is 0.4, what are capital per worker, production per worker, and consumption per worker in the steady state? b. Solve for steady-state capital per worker, production per worker, and consumption per worker with s = 0.6. c. Solve for steady-state capital per worker, production per worker, and consumption per worker with s = 0.8.49. For a given level of technology, a more rapid rate of economic growth can probably be achieved only if a country's citizens are prepared to increase exports. decrease interest rates. increase their demand for goods and services. sacrifice some present consumption. redistribute income.
- Suppose some of the country's capital is suddenly destroyed. If the depreciation rate, savings rate, and production function remain unchanged, then the real growth rate will _____ in the short run and the steady-state level of capital will _____ A.increase, decrease B.decrease, decrease C.increase, stay the same D. decrease, stay the sameWhich one of the following best describes economic growth? Select one: a. an increase in real GDP per capita over time, where GDP per capita is real output divided by population. b. a sustained increase in nominal GDP occurring over time. c. an increase in the value of final goods and services produced within the borders of the country in a one-year period. d. an absolute change of GDP or GDP per capita over time.Explain how the saving rate and the rate of population growth affect the steady-state level of income , and the steady -state rate of growth.
- Would the following events usually lead to capital deepening? Why or why not? a. A weak economy in which businesses become reluctant to make long-term investments in physical capital. b. A rise in international trade. c. A trend in which many more adults participate in continuing education courses through their employers and at colleges and universities.Suppose that for a particular country, the savings rate is 20%, the capital–output ratio is 4, the depreciation rate is 1%, and the rate of growth of the population is 2% per year. a) Calculate the rate of growth of overall GDP. b. What is the rate of per capita GDP growth? c. What should the savings rate be to get the growth rate of overall GDP to 8%?Economic Growth II- Work It Out Question 1 An economy has a Cobb-Douglas production function: Y = K (LE)¹- The economy has a capital share of 0.35, a saving rate of 45 percent, a depreciation rate of 5.00 percent, a rate of population growth of 5.50 percent, and a rate of labor- augmenting technological change of 4.0 percent. It is in steady state. c. The economy has capital than at the Golden Rule steady state. To achieve the Golden Rule steady state, the saving rate needs to d. Suppose the change in the saving rate you described in part c occurs. During the transition to the Golden Rule steady state, the growth rate of output per worker will be the rate you derived in part a. After the economy reaches its new steady state, the growth rate of output per worker will be
- Suppose in the economy in question 4) there is an increase in the saving rate from 6% up to 10%.Briefly explain how this will affect the following variables in the steady-state.capital per workera)b)investment per workerc)growth rate of output per workerd)growth rate of outputBased on article "Technology and economic growth: From Robert Solow to Paul Romer" by Rui Zhao, Solow mentioned, technology (At) and capital per unit of effective labor (Kt) have a significant influence on a country's ability to “catch-up” or “converge” to a steady-state level (K*). In brief define what it means by a steady-state level.Suppose that the production function is Y = 10 ( K )^1/4 ( L )^3/4 and capital lasts for an average of 50 years . Assume that the rate of growth of population equals 0 and saving rate s = 0.128 . a. Calculate the steady - state level of capital per worker , output per worker , consumption per worker , saving and investment per worker , and depreciation per worker b. Suppose that initial level of capital per worker is 100 , explain the moving process to the steady state . c . Use relevant graph to demonstrate . Plsss provide detailed answers, thank you
