Assume that a country’s per-worker production
Question # 00429756
Posted By:
Updated on: 11/23/2016 08:38 AM Due on: 11/23/2016
Assume that a country’s per-worker production is given by y = k1/2, where y is output per-worker and k is capital per worker. Assume also that 10 percent of capital depreciates peryear (= 0.10).
a. If the saving rate (s) is 0.4, find capital per worker, production per worker, andconsumption per worker in the steady state.
b. Solve for steady-state capital per worker, production per worker, and consumption perworker with s = 0.6.
c. Solve for steady-state capital per worker, production per worker, and consumption perworker with s = 0.8.
d. Is it possible to save too much? Why?
Show your work please.
a. If the saving rate (s) is 0.4, find capital per worker, production per worker, andconsumption per worker in the steady state.
b. Solve for steady-state capital per worker, production per worker, and consumption perworker with s = 0.6.
c. Solve for steady-state capital per worker, production per worker, and consumption perworker with s = 0.8.
d. Is it possible to save too much? Why?
Show your work please.
-
Rating:
/5
Solution: Assume that a country’s per-worker production