Assignment 4

Assignment 4 - Macroeconomics 314 Assignment 4 Numerical...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Macroeconomics 314 Assignment 4 Numerical Problems: 3. a. Year K N Y Capital-Labor Ratio Output/Worker 1 200 1000 617 0.2 0.617 2 250 1000 660 0.25 0.66 3 250 1250 771 0.2 0.617 4 300 1200 792 0.25 0.66 Although the total output increases from year 1 to year 3, the capital-labor ratio and output per worker remain constant. The same holds true for year 2 and year 4. Production function per worker: y=(K^0.3*N^0.7)/N b. Year K N Y Capital-Labor Ratio Output/Worker 1 200 1000 1231 0.2 1.231 2 250 1000 1316 0.25 1.316 3 250 1250 1574 0.2 1.259 4 300 1200 1609 0.25 1.341 The total output increases from year 1 to year 3, and the capital-labor ratio and output per worker slightly increase. The same holds true for year 2 and year 4. Production function per worker: y=(K^0.3*N^0.8)/N 5. a. y=f(k)=3k^.5
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
S=0.3Y s=0.3 n=0.05 d=0.01 (n+d)k=0.15k=sf(k)=0.3*3k^.5 k=36 y=18 c=f(k)-(n+d)k=12.6 b. .15k=.4*3k^.05 k=64 y=24 c=14.4 c. .18k=.3*3k^.05 k=25 y=15 c=10.5 d. .15k=.3*4k^.05 k=64 y=32 c=22.4 Analytical Questions:
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 05/06/2008 for the course ECON 3140 taught by Professor Mbiekop during the Fall '07 term at Cornell.

Page1 / 3

Assignment 4 - Macroeconomics 314 Assignment 4 Numerical...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online