1) Imagine a Solow Growth Model with a standard Cobb-Douglas production function and the following parameters: ...
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Question:
1) Imagine a Solow Growth Model with a standard Cobb-Douglas production function and the following parameters:
m = 0.33; d = 0.05; A = 1; s = 0.5; n = 0.25
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a) Calculate the rate of capital accumulation (law of motion)
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b) Calculate the steady state level of capital?
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c) Calculate the steady state level of real output/income?
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d) Calculate the steady state level of investment?
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e) Calculate the steady state level of consumption?
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f) What effect does a higher population growth rate have on this model?
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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