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Unformatted text preview: y in economies 0 and 3 when (i) both economies are in their own steady states; (ii) t 1, 2 and 3. 5. Compute levels and growth rates of y in economies 0 and 4 when (i) both economies are in their own steady states; (ii) t 1, 2 and 3. 6. In economy 0, let L be the population size. What is the steady-state consumption per person? 7. Let 0.5, 0.9, L 100, n 0, s 0.5, A t 1.005 t , and K 0. (i) What are the steady-state growth rates of k and y ? (ii) Suppose the economy is in the steady state at date 0. Compute k . (iii) Let k 0.5. Compute levels and growth rates of y in this economy and the very same economy with s 0.6 when t 1, 2 and 3....
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This note was uploaded on 04/02/2009 for the course ECON 3140 taught by Professor Mbiekop during the Spring '07 term at Cornell University (Engineering School).
- Spring '07