Please help me answer 6-10. 6. Suppose the production function takes the form Y = AK0.5 10.5. Two countries (1 and 2) share the sameproductivity, but the capital stock per worker of country 1 is 100 times larger than the capital stock per workerof country 2. It follows that per capita GDP in country 1 istimes the one of country 2.a. 1000b. 100C.50d. 10e. 27. In the production model, an increase in total factor production (Ā) leads to an increase in:a. K (capital rented by firms)b. L (labor hired by firms)r (rental price) and KC.d.w (real wage), r, and Ye. w, r, K, L, and Y8. In the production model, TFP explains aboutperson explains about%.50; 50a.b. 75; 2525; 750; 100100; 0c.d.e.% of income differences across countries while capital per9. Differences in TFPs across countries are explained by differences in:a. Monetary policyb. Country sizesC. Natural resourcesd. Institutions, such as property rights and rule of law.Weathere.10. In the Solow model, the equation of capital accumulation is:a. Akt Kt - Kt-1 = SYt + dKt-1b. Akt Kt - Kt-1 = 5K+ + dytc. AKt = Kt - Kt-1 = SYtd. AKt+1 = Kt+1 - Kt = SYt - dkte. Akt+1= Kt - Kt-1 = SYt - dkt-1

Here we are given the production functions of 2 countries. Which explains that the output of the…

Answered: 6. Suppose the production function…

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter20: Economic Growth In The Global Economy

Section: Chapter Questions

Problem 4P

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Canadian real GDP per capita is 50,097 (measured in constant 2017 USD, same for thefollowing numbers) in the year 2019 and 40,489 in the year 1999. Canadian real capital stockper capita is 226,225 in the year 2019 and 155,256 in 1999. Calculate the growth rate of GDPper capita in Canada for these two decades, as well as the contribution from productivitygrowth and that from capital accumulation. You can use a capital share α of 1/3.
In 2000 GDP per capita was 18.3, capital/output was 3.3, human capital was 4.8. In 2010 GDP per capita was 23.3, capital/output 5.7, human capital was 4.5. In both years the production function is Cobb-Douglas with a value for α of 0.4. What was the ratio of GDP per capita in 2010 to 2000 due *just* to the change in the capital/output ratio? Use 2 decimal places.
3. Graphing the steady-state: reorganize the equilibrium law of motion into two functions, a linear function and a concave function, whose point of intersection defines the steady-state quantity of capital per capita. Name these two functions g1 (k) for the linear function and g2 (k) for the concave function. Circle the expression for these two functions. Graph the two functions of capital per capita derived in the previous step, with the function value on the y-axis and the argument of both functions (capital per capita) on the x-axis. Label the axes and label the functions: make it clear which line corresponds to which function (g1 (k) or g2 (k)). 4. Comparative statics in the steady-state: draw a new version of the graph from the previous question. Using this graph, explain what happens when the population growth rate increases from n1 to n2. In particular, do the following: (a) Draw the effect of this change on the functions in the graph. (b) What does an increase in n represent?…
11. In 2022 a country has the following data: GDP TFP Capital Labor Y A K L 400 1,100 20 The production function is Y = A¿KQ4 LQ.6 and the capital stock evolves according to Kt+1 growth rate of labor is 0.6% and TFP growth is 2%. Assume that population is equal to labor. Use the Solow model to calculate per-capita GDP in 2024 (two years later). (1 – d)Kt + It. The saving rate 22%, the depreciation rate is 10%, the (а) 498.32 (b) 504.42 (c) 516.96 (Right answer) (d) 548.87
In 2000 GDP per capita was 14.2, capital/output was 3.5, human capital was 3.6. In 2010 GDP per capita was 20.3, capital/output 4.8, human capital was 4.4. In both years the production function is Cobb-Douglas with a value for alpha of 0.4. What was the ratio of GDP per capita in 2010 to 2000 due *just* to the change in the capital/output ratio? Use 2 decimal places.
YIN CN Next question Suppose that the production function is given by Y- 05VR N 454 where Y is output, Kis capital, and N is the number of workers 4 Suppose that 60 05 With your favonte spreadsheet software, compute steady-state output per worker and steady-state consumption per worker for s 0, 801, a02, s1 Graph the steady-state level of output per worker and the steady-state level of consumption per worker as a function of the saving rate 25 1) Using the multipoint curve drawing tool, drawa curve showing the relationship between YIN and the saving rate. Properly label your curve 15 2) Using the multipoint curve drawing tool, draw a curve showing the relationship between CIN and the saving rate. Properly label your curve 0.5 Although the control ponts for your multpownt curves do not have to be exact try to plot them as accurately as possible 01 02 03 a'4 os o6 07 os 09 Saving rate, At what saving rates are YIN and CIN maximized? After plotting the final point of your multipoint curve…
Year 1960 1980 Argentinal 2018 $5,643 Percentage of Real GDP per 1960 2018 capita real real (2010 GDP GDP dollars) per per capita capita 7,908 ? 2000 8,224 ? The accompanying table shows data from the World Bank, World Development Indicators, for real GDP per capita in 2010 U.S. dollars for Argentina, Ghana, South Korea, and the United States for 1960, 1980, 2000, and 2018. 10,044 ? ? ? ? C Ghana Real GDP per 1960 capita real (2010 GDP dollars) per Percentage of 881 $1,056 ? 952 capita ? ? 1,807 ? 2018 real GDP per capita ? ? ? 2. South Korea Real GDP per capita (2010 dollars) $944 Percentage of 15,105 1960 real GDP per capita ? 3,700 ? ? 26,762 ? 2018 real GDP per capita ? ? ? ?
The following table shows the GDP per capita of various countries forthe years 1960 and 2010 in PPP-adjusted 2005 dollars. The table alsocontains the implied growth rates, which show how much on average eachcountry needed to grow each year to reach the 2010 level of GDP per capitastarting from the 1960 level of GDP per capita. Use the table to answer thefollowing questions. 1. During 1960-2010, which countries failed to reduce the gap betweentheir GDP per capita and the U.S. GDP per capita?
if a nation real gdp is growing by 3.5 percent per year , its real GDP will double in aproxiately 1. 41.1 years 2, 20.6 years 3, 10.3 years 4, 72 years
please answer the following, I have attached an image of the question for better format. Thanks! 3. Suppose that the production function of a country is given by Y=KaL1-a, where 0<a<1, Y is output, L is labour, and K is capital, Derive the equation for steady state capital per worker, output per worker, and consumption per worker in terms of the saving rate (s) and depreciation rate (d).
Suppose that total capital and labour both increase by the Suppose that total capital and labour both increase by the same percentage amount so that the amount of capital per worker k does not change. Writing the production function in per-worker terms, y = f(k), requires that this increase in capital and labour must not change the amount of output produced per worker y. Use the growth accounting equation to show that equal percentage increases in capital and labour will leave output per worker unaffected only if aK + aN = 1. Suppose that total capital and labour both increase by the
The following table shows the GDP per capita of various countries forthe years 1960 and 2010 in PPP-adjusted 2005 dollars. The table alsocontains the implied growth rates, which show how much on average eachcountry needed to grow each year to reach the 2010 level of GDP per capitastarting from the 1960 level of GDP per capita. Use the table to answer thefollowing questions. 1. During 1960-2010, which countries were able to reduce the gap betweentheir GDP per capita and the U.S. GDP per capita?

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