HW7 - Homework 7- Intermediate Macroeconomics-Due on...

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Homework 7- Intermediate Macroeconomics-Due on Nov.9th, next Tue. 1. Consider an economy described by the production function 13 44 () YKL E = . The depreciation rate of the capital is 0.05 δ = and the population growth rate is 0.05 n = and the technology growth rate is 0.1 g = .(60 points) a) What is the per effective worker production function? What is the marginal product of capital? b) If the saving rate 0.2 s = , find the steady state level of capital per effective worker * k . What is the steady state level of output per effective worker * y ? What is the steady state level of investment per effective worker * i ? What is the steady state level of consumption per effective worker * c ? c) Find the golden rule level of capital per effective worker * g k ? What is the golden rule level of output per effective worker * g y ? What is the golden rule level of investment per effective worker * g i ? What is the golden rule level of consumption per effective worker * g c and compare it to the one in question b). Is * g c higher than * c ?
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This note was uploaded on 02/02/2011 for the course ECO 305 taught by Professor Kisina during the Fall '08 term at SUNY Stony Brook.

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HW7 - Homework 7- Intermediate Macroeconomics-Due on...

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