San Diego State University Intermediate Microeconomics Growth Models Questions

Our academic writers are ready and waiting to assist with any assignment you may have. From simple essays to full dissertations, you're guaranteed we've got a writing expert to perfectly match your needs.


Order a Similar Paper Order a Different Paper

Question Description

I don’t understand this Economics question and need help to study.

1 Savings and Growth

Many households have been forced to reduce savings in response to the COVID-19 crisis. Using the growth model from class, consider the impacts on long-run growth from a reduction in the savings rate. Provide a graph that clearly illustrates the effects along with a brief discussion. Be sure to mention the effects on the long-run growth rate.

2 Growth Discrepencies

Both China and India have averaged around 7% GDP growth rates over the last 5 years while the US and Japan have averaged around 2%. The population growth rates for the US and China and Japan are all under 1% (.5% for China, .8% for the US, and −.1% for Japan) while India’s is 1.2% (also relatively modest). Discuss these facts in the context of a Solow-Swan growth model, clearly explaining your reasoning.

3 Growth Model

Suppose that output (Y ) in an economy is given by the following aggregate production function:

Yt = Kt + Nt

where Kt is capital and Nt is the population. Furthermore, assume that capital depreciates at rate δ and that savings is a constant proportion s of income. You may assume that δ > s.

1. Suppose that the population remains constant. Solve for the steady-state level of capital per worker.

2. Now suppose that the population grows at rate n. Solve for the steady-state level of capital per worker.

3. Based on your answer to part 2) above, solve for the steady-state growth rates (in terms of n) of the following:

(a) capital per worker (b) output per worker (c) capital (d) output

Writerbay.net

Do you need help with this or a different assignment? In a world where academic success does not come without efforts, we do our best to provide the most proficient and capable essay writing service. After all, impressing professors shouldn’t be hard, we make that possible. If you decide to make your order on our website, you will get 15 % off your first order. You only need to indicate the discount code GET15.


Order a Similar Paper Order a Different Paper