ECO221B HW's

ECO221B HW's - d = 9 per year Government purchases goods...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
ECO 221B HW 1 Due Date: January 31 (The Beginning of the Class) Contact information for the TA: Name: Douwere Grekou Email: [email protected] or [email protected] Problems: 1. Chapter 8: Problems 1, 4, 7. 2. Both population and the workforce grow at the rate of n = 1% per year in a closed economy. Consumption is C = 0.5(1 - t)Y , where t is the tax rate on income and Y is total output. The per worker production function is y = 2k 0.5 , where y is output per worker and k is the capital-labor ratio. The depreciation rate of capital is
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: d = 9% per year. Government purchases goods each year and pays these purchases using taxes on income. The government runs a deficit which is equal to 20% of its tax revenues. The tax rate on income is t = 50%. a. Write down the expressions for private saving per worker and government saving per worker as functions of k. What is national saving per worker? b. Calculate steady state capital labor ratio, output per worker, consumption per worker, and investment per worker....
View Full Document

This note was uploaded on 02/04/2011 for the course ECON 221B taught by Professor Kuruscu during the Spring '07 term at UWO.

Ask a homework question - tutors are online