Macroeconomics Preview File Edit View Go Tools Window Help O @ 61% E. Wed 9:27 A

Question

Macroeconomics

Preview File Edit View Go Tools Window Help O @ 61% E. Wed 9:27 AM a PS1.pdf (page 1 of 2) Q Search 2) 4. Consider a Solow model with land and natural resources. Denote land by L and natural resources by M. Land is a type of capital stock that cannot be augmented and does not depreciate. Natural resources are intermediate inputs that cannot be produced and depreciate completely upon use. The production function takes the following fornm For sustainable growth and environmental concerns, suppose production activity employs less natural resources every period (a) Solve for gy, the growth rate of GDP along the balanced growth path (b) Derive the equation that determines k*, the steady state level of capital-labor ratio (c) One of the Kaldor facts states that rental rate of capital stays constant over time. Is this true for land in this model? If yes, prove it. If no, does rental price of land grow at a constant rate? If yes, solve for the growth rate. If no, prove it 26 ·13

Explanation / Answer

The number of households in the sample may seem small, especially when compared to the greater than 350 million people who live in the U.S., but it is actually quite large compared to most public opinion surveys; usually, these surveys feature 2,000 or so participants, sometimes even fewer. Each month, U.S. Census employees contact the households in the sample and ask specific questions to determine employment status. The first piece of information they want to determine is how many people in the household are actually in the labor force, meaning these people have jobs or are actively looking for jobs. Only citizens who are in the labor force are counted in the unemployment rate. Someone who does not have a job but claims he is not looking for one is considered out of the labor force and is not counted in the unemployment rate.

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.