In Class #3

In Class #3 - 1 Economics 101 In-Class Exercise #3 Answers...

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Unformatted text preview: 1 Economics 101 In-Class Exercise #3 Answers Romer Model Department of Economics Professor Siegler UC Davis Summer 2009 Consider two countries that are described by the Romer growth model: (Output production function) (Ideas production function) (Resource constraint) (Allocation of labor) The following exogenous parameters are the same in both countries: 250, 1 4,000 0.00025, 2,000 The only difference between the two countries is that Country B has a larger share of researchers than does Country C. In Country B, 8 percent of the population are researchers in the ideas producing sector, while in Country C only 4 percent of the population are researchers ( 0.08 0.04 ). A. What is the level of output per capita in Country B and Country C in year 0? Which country produces more goods and services per person in year 0? country produces more goods and services per person in year 0?...
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This note was uploaded on 08/09/2009 for the course ECON 101 taught by Professor Miyanishi during the Summer '08 term at UC Davis.

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In Class #3 - 1 Economics 101 In-Class Exercise #3 Answers...

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