ECON 4710 Chapter : Hw4Ans
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Homework assignment 4 answer key: (15 points) A/a = y/y ak k/k an n/n. = 30% (0. 3 30%) 0. 7 15% Capital growth contributed 9% (ak k/k), labor growth contributed 10. 5% (an n/n), productivity growth was 10. 5%: (40 points, 20 each) sf(k) = (n + d)k. 6 = k. 5 k = 62 = 36 y = 3k. 5 = 3 6 = 18 c = y (n + d)k = 18 (0. 15 36) = 12. 6 (b): sf(k) = (n + d)k. 8 = k. 5 k = 82 = 64 y = 4k. 5 = 4 8 = 32 c = y (n + d)k = 32 (0. 15 64) = 22. 4: (30 points) According to the economic growth theory that we have studied, how would each of the following events affect per capita consumption in the long-run (i. e. , after return to the steady state) Assume that the economy begins (pre-attack) in the steady state.
