Question: Suppose that z the marginal product of efficiency units of
Suppose that z, the marginal product of efficiency units of labor, increases in the endogenous growth model. What effects does this have on the rates of growth and the levels of human capital, consumption, and output? Explain your results.
Answer to relevant QuestionsSuppose 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 ...A consumer receives income y in the current period, income y' in the future period, and pays taxes of t and t' in the current and future periods, respectively. The consumer can borrow and lend at the real interest rate r. ...Suppose in our two-period model of the economy that the government, instead of borrowing in the current period, runs a government loan program. That is, loans are made to consumers at the market real interest rate r, with ...Use the social security model developed in this chapter to answer this question. Suppose that a government pay-as-you-go social security system has been in place for a long time, providing a social security payment to each ...Suppose that there is a shift in the representative consumer’s preferences. Namely, the consumer prefers, given the market real interest rate, to consume less current leisure and more current consumption goods.(a) ...
Post your question