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Intermediate Macroeconomics Problems Economics Coursework
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Intermediate Macroeconomics Problems
ECO201 - Intermediate Macroeconomics
Fall 2018
Assignment 4
Rewrite the above equations to get a production function in per-worker terms and an equation relating the change in capital per worker (∆kt+1) to output per worker. Your final result should use our per-worker notation
(a) Rewrite the above equations to get a production function in per-worker terms and an equation relating the change in capital per worker (∆k t+1 ) to output per notation:
K t/ Nt = I t/ N t - δ Kt Nt ( K t/ Nt =it- δKt
Then capital accumulation(, kt=-sAK t α -(δ+n)Kt
1(b) in the steady-state the rate of capital, output, and consumption changes in the same way as the technological progress
kt+1=kt=k annd k=0
For the steady state
(The capital accumulation equation kt+1=-sAKt α +(1-δ)Kt and ∆ Kt+1=sAf(Kt)- δKt
Setting Kt =Kt+1=K*
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