Assume Y = A*K5*L5
58) In equation form- what is the marginal product of capital ?
59) In equation form what is the marginal product of labor ?
60) How do we know that each is diminishing.
61) Prove that if you double capital and double labor Y doubles.
62) What is the characteristic described in d called in words ?
63) Write out the Solow Equation for the growth rate of capital per worker as a function of y/k, S, n, and
68) Given the production function: Y =AKE Derive the equation for y/k as a function of just A and k.
73) Given the production function: Y = A*KS*L Derive the equation for k* as a function of just A, s, n, and
78) Given the production function: Y =A*K*L's Derive the equation for y as a function of just A and k.
Given the production function: Y = A*KS*L Assume Technology is 1. Savings rate = 5%, depreciation rate
10% and population growth rate = 2%.
83) What is the steady state amount of capital per worker?
86) What is the steady state output per worker ?
88) If the depreciation rate is increased during a prolong war to 30% - what is the new steady state of capital ?
91) What is the steady state output per worker ?
93) By what percent does output per worker fall.
94) Assume the war ends and depretiation returns to 10%. Further assume at the end of the war capital per
worker is 1. How fast does capital per worker grow in the first year after the war ?
97) What does this equation tell us : y*=g/(1-a) -
99) If techology grows at a rate of 1% per period- how fast does output per worker grow in the long run or steady
state if the production function is Y = A*K5*L5
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