Economic Growth I – Work It Out Question 1a. Does this production function have constant returns toCountry A and country B both have the productionscale?function.yesY = F(K, L) = KLnob. What is the per-worker production function, y = f(k)?y =0.5 Economic Growth I – Work It Out Question 1c. Assume that neither country experiences populationgrowth or technological progress and that 3 percent ofCountry A and country B both have the productioncapital depreciates each year. ASsume further that countryfunction.A saves 11 percent of output each year and country B savesY = F(K, L) = KiL19 percent of output each year. Using your answer from partb and the steady-state condition that investment equalsdepreciation, find the steady-state level of capital per worker(k*), income per worker (y*), and consumption per worker(c*) for each country.For Country AFor Country Bk* for Country A:k* for Country B:y* for Country A:y* for Country B:c* for Country A:c* for Country B:

The production function would be the maximum output which can be produced with the given resources…

Economic Growth I – Work It Out Question 1 a. Does this production function have constant returns to Country A and country B both have the production scale? function. yes Y = F(K, L) = KiL! no b. What is the per-worker production function, y = f(k)? y = k0.5

Economic Growth I – Work It Out Question 1 a. Does this production function have constant returns to Country A and country B both have the production scale? function. yes Y = F(K, L) = KiL! no b. What is the per-worker production function, y = f(k)? y = k0.5

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter17: Production And Growth

Section17.1: Economic Growth Around The World

Problem 1QQ

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