The main properties of a Neoclassical aggregate production func... | Filo
The main properties of a Neoclassical aggregate productio…
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SOLVED:Assume that the production function satisfies the neoclassical properties. (a) Why would the saving rate, s, generally depend on k ? (Provide some intuition: the precise answer will be given in Chapter 2.) (b) How does the speed of convergence change if s(k) is an increasing function of k ? What if s(k) is a decreasing function of k ? Consider now an A K technology. (c) Why would the saving rate, s, depend on k in this context? (d) How does the growth rate of k change over time depending
SOLVED:Assume that the production function satisfies the n…
Jul 14, 2023
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*17. Assume that the production function is Cobb-Douglas with parameter = 0.3. In theneoclasical model, if the labor force increases by 10 percent, then output:a. increases by about 10 percent.b. increases by about 7 percent.c. increases by about 3 percent.d. does not increase since the new workers are unemployed.*18. Real GDP over time, and the growth rate of real GDP a. grows; fluctuatesb. is steady; is steadyc. grows; is steadyd. is steady; fluctuates*19. All of the following statements abou
*17. Assume that the production function is Cobb-Douglas with par…
Nov 5, 2023
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