Maurice Tutor

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Teaching Since: May 2017
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  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 15 Jan 2018 My Price 5.00

rate of the economy

Consider the model of Section 3.3 with β + θ = 1 and n = 0.

a) Using (3.14) and (3.16), find the value that A/K must have for gK and gA to be equal.

(b) Using your result in part (a), find the growth rate of A and K when gK = gA.

(c) How does an increase in s affect the long-run growth rate of the economy?

(d) What value of aK maximizes the long-run growth rate of the economy? Intuitively, why is this value not increasing in β, the importance of capital in the R&D sector?

 

 
 

Answers

Maurice Tutor
(5)
Status NEW Posted 15 Jan 2018 09:01 PM My Price 5.00

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