Subject : Macroeconomics

91: What is main difference between static analysis, dynamic analysis and comparative analysis? (3) Q; We have a production function Y = f(K, L), where Y = output, K = Capital, L = labour. Derive y = f(k) where y = output per worker, and k = capital per worker. (2) Q; Explain graphically, the steady state level of capital accumulation where actual investment is sf(k) and break even investment is (6 + n + glk. (5) Q5 Explain graphically, Golden rule level of capital where actual investment is sf(k) and break even investment is (6 + n + g)k. (5) 9.5; Suppose economy is Operating at steady state level where Ak = 0, and sf(k) = (6 + n + g)k; if (6 + n + g)k increase what happens to steady state level, Explain graphically