a. State the per-worker production function.
b. If the savings rate is 0.2 and the depreciation rate is 0.05, calculate the steady-state capital stock per worker, output per worker, and consumption per worker.
c. Now suppose the government increases spending, reducing the country's savings rate to 0.1. Redo the calculations in (b) based upon this change. What is the effect on the government spending on the economy.
This question was asked on Apr 30, 2010.
Recently Asked Questions
- a. You have been called in to consult on a new network design for CNT Books. The requirements of this design are summarized as follows: The building has
- Consider a container of oxygen gas at 1 atm and 300 K. What fraction of the O2 molecules has a speed between 99% and 101% of v_rms?
- Please refer to the attachment to answer this question. This question was created from practice midterm1_Spring 2018.pdf.