This topic contains a solution. Click here to go to the answer

Author Question: Given the production function Y = A if output grows by five percent, the capital input grows by five ... (Read 60 times)

bobbie

  • Hero Member
  • *****
  • Posts: 592
Given the production function Y = A if output grows by five percent, the capital input grows by five percent, and the labor input grows by two percent, calculate the Solow residual.
 
  Calculate the growth rates of output per worker and capital per worker.

Question 2

In the classical model, people hold money because
 
  a. it is a way to save.
  b. it makes trade easier.
  c. it is the way to measure the value of goods and services.
  d. it is an asset.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

stillxalice

  • Sr. Member
  • ****
  • Posts: 339
Answer to Question 1

The Solow residual = 0.05 - 0.3  0.05 - 0.7  0.02 = 0.021. The growth rate of output per worker is 0.05 - 0.02 = 0.03, which is also the growth rate of capital per worker.

Answer to Question 2

B




bobbie

  • Member
  • Posts: 592
Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)


tandmlomax84

  • Member
  • Posts: 323
Reply 3 on: Yesterday
Wow, this really help

 

Did you know?

In most cases, kidneys can recover from almost complete loss of function, such as in acute kidney (renal) failure.

Did you know?

Though “Krazy Glue” or “Super Glue” has the ability to seal small wounds, it is not recommended for this purpose since it contains many substances that should not enter the body through the skin, and may be harmful.

Did you know?

In ancient Rome, many of the richer people in the population had lead-induced gout. The reason for this is unclear. Lead poisoning has also been linked to madness.

Did you know?

On average, the stomach produces 2 L of hydrochloric acid per day.

Did you know?

Children with strabismus (crossed eyes) can be treated. They are not able to outgrow this condition on their own, but with help, it can be more easily corrected at a younger age. It is important for infants to have eye examinations as early as possible in their development and then another at age 2 years.

For a complete list of videos, visit our video library