9th Assignment: Number 12: Consider the following three countries that produce GDP this way: - Y = 5y'K Ilia: K 100 machines - Caplania: K =10'000 machines Hansonia: K = 1,000.000 What will GDP (Y) be in these three countries? Hansonia has 10,000 times more machines than Ilia, so whyr isn't it 10.000 times more productive? Number 13: consider the data in the previous question: If 10% of all machines become worthless every year (they depreciate, in other words). then how many machines will become worthless in these three countries this year? Are there any countries where the amount of depreciation is actually greater than GDP? (This question reminds you that "more machines mean more machines wearing out") Number 14: Ofcourse. no country makes only investment goods like machines. equipment. and computers. They also make consumer goods. Let's consider a case where the countries in question 12 devote 25% of GDP to making investment goods (so v, gamma' = 0.25). What is the amount of savings in these three countries? In which countries is Investment Depreciation