In the Malthusian model, suppose that there is a technological advance that reduces death rates. Using diagrams determine the effects of this in the long-run steady state and explain your results.
Answer to relevant QuestionsIn the Solow growth model, suppose that the marginal product of capital increases for each quantity of the capital input, given the labor input.(a) Show the effects of this on the aggregate production function.(b) Using a ...Alter the Solow growth model so that the production technology is given by Y = zK, where Y is output, K is capital, and z is total factor productivity. Thus, output is produced only with capital.(a) Show that it is possible ...In the Solow growth model, suppose that the per-worker production function is given by y = zk.3, with s = 0.25, d = 0.1, and n = 0.02.(a) Suppose that in country A, z = 1. Calculate per capita income and capital per ...Suppose that the government makes a onetime investment in new public school buildings, which results in a one-time reduction in consumption. The new public school buildings increase the efficiency with which human capital is ...Assume an economy with 1,000 consumers. Each consumer has income in the current period of 50 units and future income of 60 units and pays a lump-sum tax of 10 units in the current period and 20 units in the future period. ...
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