Business, 17.03.2020 05:49 Deavionaaaaa

Assume that the pre-worker production function is yt = 2kt^0.5. The saving and depreciation rete retes are estimated at 0.2 and 0.04, respectively.

a. Calculate the capital-labor ratio steady state for this economy.

b. Calculate consumption per worker at the steady state.

Answers: 2

Show answers

Answers

(A). It is given that the production function is $Y_{t} = 2K_{t}^{0.5}$ . All the variables are in per workers terms. Like y) is output per worker and lu is the capital-labor ratio.

The Depreciation rate is = 0.04 and the Savings rate is $S_{t}$ = 0.2

a) At steady-state the change in capital is zero. The calculation of capital-labor ratio given steady state is as follows:

Δk = 0

$SY_{t} - ∞K_{t} = 0$

$0.2(2K_{t}^{0.5} ) = 0.04K_{t}$

$0.4K_{t}^{0.5} = 0.04K_{t}$

$K_{t} = 100$

Thus, the steady-state value of the capital-labor ratio is $K_{t} = 100$

(b) to calculate consumption per worker, first calculate the output per worker and then calculate the consumption per worker. The calculations are as follows:

$Y_{t} = 2K_{t}^{0.5}$

$Y_{t} = 2(100)^{0.5}$

$Y_{t} = 2(10)$

$Y_{t} = 20$

The output per worker is 20

The calculation of steady-state value of the consumption per worker is as follows

C= (1—s) y

C = (1— 0.2)20

C= 0.8 x 20

C = 16

Thus, the consumption per worker at the steady state is 16

Answer from: MayFlowers

a) K_t 100

b) Y_t = 200

Explanation:

When the economy is at steady state then, it will grow at zero it is only replacing for the depreciate capital.

So, savings times income (investment) matches Capital times depreciation rate

$S \times Y_t = d \times K$

$0.2(2K_t^{0.5})= 0.04K_t\\0.4K_t^{0.5} = 0.04K_t\\K_t = (\frac{0.04K_t}{0.4})^2 \\K_t = 0.01K_t^2\\\\0 = 0.01K_t^2 - K_t\\$We solve the root: K_t = 100$

(The previous istep is made with the quadratic formula)

second question:

Now, we solve for C per worker at this rate

$Y_t= 2K_t^{0.5}\\Y_t = 2(100)^{0.5}\\\\Y_t = 20$

Answer from: Quest

answer; i believe the correct answer is (form utility); good luck

Answer from: Quest

someone i feel is a leader in my life id have to say would be my mother because she has give me great advice in life and got me out of tough situations. some characteristics she has are creativity, honesty, commitment, respect for others, and communication. one example of a situation when she demonstrated leadership was when i was working late on homework and i started to get stressed and got upset, she asked me if i needed some , and she me with my work. she demonstrated communication and commitment.

i don't know if this is exactly what your looking for but i hope this !

Other questions on the subject: Business

Business, 21.06.2019 21:30, haley816

Big trail running company has started to produce running apparel in addition to the trail running shoes that they have manufactured for years. they feel that a departmental overhead rate would best reflect their overall manufacturing overhead usage. based on research the following information was gathered for the upcoming year: machining department finishing department estimated manufacturing overhead by department $ 600 comma 000 $ 400 comma 000 trail running shoes 440 comma 000 machine hours 11 comma 000 direct labor hours running apparel 60 comma 000 machine hours 39 comma 000 direct labor hours manufacturing overhead is driven by machine hours for the machining department and direct labor hours for the finishing department. at the end of the year, the following information was gathered related to the production of the trail running shoes and running apparel: machining department finishing department trail running shoes 442 comma 000 hours 10 comma 500 hours running apparel 57 comma 000 hours 40 comma 000 hours how much manufacturing overhead will be allocated to the trail running shoes

Answers: 3

continue

Business, 22.06.2019 02:30, ava831

The monthly sales for yaziciâ€‹ batteries, inc., were asâ€‹ follows: month jan feb mar apr may jun jul aug sept oct nov dec sales 19 20 17 12 11 18 16 17 19 22 21 24 this exercise contains only parts b and c. â€‹b) the forecast for the next monthâ€‹ (jan) using the naive methodâ€‹ = nothing sales â€‹(round your response to a wholeâ€‹ number). the forecast for the next periodâ€‹ (jan) using aâ€‹ 3-month moving average approachâ€‹ = nothing sales â€‹(round your response to two decimalâ€‹ places). the forecast for the next periodâ€‹ (jan) using aâ€‹ 6-month weighted average with weights of 0.10â€‹, 0.10â€‹, 0.10â€‹, 0.20â€‹, 0.20â€‹, and 0.30â€‹, where the heaviest weights are applied to the most recent monthâ€‹ = nothing sales â€‹(round your response to one decimalâ€‹ place). using exponential smoothing with alpha â€‹= 0.40 and a september forecast of 21.00â€‹, the forecast for the next periodâ€‹ (jan) = nothing sales â€‹(round your response to two decimalâ€‹ places). using a method of trendâ€‹ projection, the forecast for the next monthâ€‹ (jan) = nothing sales â€‹(round your response to two decimalâ€‹ places). â€‹c) the method that can be used for making a forecast for the month of march is â–ľ a 3-month moving average a 6-month weighted moving average exponential smoothing the naive method a trend projection .

Answers: 2

continue

Business, 22.06.2019 03:20, emilyplays474

Look at this check register. calculate the current balance. check date transaction (+) deposit balance 5/1 5/3 $82.92 debit 8.00 78.24 005 monthly fee phone bill paycheck 1 125.00 5/15 5/17 5/20 atm 40.00 56.50 006 t ennis lessons the current balance is?

Answers: 1

continue

Business, 22.06.2019 08:10, nerdypineapple

What are the period and vertical shift of the cosecant function below? period: ; vertical shift: 1 unit up period: ; vertical shift: 2 units up period: ; vertical shift: 1 unit up period: ; vertical shift: 2 units up?

Answers: 3

continue

You know the right answer?

Assume that the pre-worker production function is yt = 2kt^0.5. The saving and depreciation rete ret...