HW3 - y in economies 0 and 3 when (i) both economies are in...

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Homework 3 (Due September 24) 1. [page 90, 1] 1, 2, 3, 4. Questions 2-5 pertain to comparing the following 5 economies. Economy 0: K 0 50, A 2,  0.5,  0.9, L 0 100, n 0, s 0.5. Economy 1: K 0 50, A 4,  0.5,  0.9, L 0 100, n 0, s 0.5 (only A differs from economy 0). Economy 2: K 0 50, A 2,  0.5,  0.9, L 0 100, n 0, s 0.6 (only s differs from economy 0). Economy 3: K 0 50, A 2,  0.5,  0.9, L 0 200, n 0, s 0.5 (only L 0 differs from economy 0). Economy 4: K 0 50, A 2,  0.5,  0.9, L 0 100, n 0.1, s 0.5 (only n differs from economy 0). 2. Compute levels and growth rates of y in economies 0 and 1 when (i) both economies are in their own steady states; (ii) t 1, 2 and 3. 3. Compute levels and growth rates of y in economies 0 and 2 when (i) both economies are in their own steady states; (ii) t 1, 2 and 3. 4. Compare levels and growth rates of
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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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