Question

4. Consider the following production function: Y = K$^\frac{1}{3}$(AN)$^\frac{2}{3}$, where both the population and the pool of labor are growing at a rate n = .07, the capital stock is depreciating at a rate d = .03, and A is normalized to 1. a. What are capital's and labor's shares of income? b. What is the form of this production function? c. Find the steady-state values of k and y when s = .20. d. At what rate is per capita output growing at the steady state? At what rate is total output growing? What if total factor productivity is increasing at a rate of 2 percent per year (g = .02)?

          4. Consider the following production function:
Y = K$^\frac{1}{3}$(AN)$^\frac{2}{3}$,
where both the population and the pool of labor are growing at a rate n = .07, the capital
stock is depreciating at a rate d = .03, and A is normalized to 1.
a. What are capital's and labor's shares of income?
b. What is the form of this production function?
c. Find the steady-state values of k and y when s = .20.
d. At what rate is per capita output growing at the steady state? At what rate is total
output growing? What if total factor productivity is increasing at a rate of 2 percent
per year (g = .02)?

4. Consider the following production function:
Y = K^(1)/(3)(AN)^(2)/(3),
where both the population and the pool of labor are growing at a rate n = .07, the capital
stock is depreciating at a rate d = .03, and A is normalized to 1.
a. What are capital's and labor's shares of income?
b. What is the form of this production function?
c. Find the steady-state values of k and y when s = .20.
d. At what rate is per capita output growing at the steady state? At what rate is total
output growing? What if total factor productivity is increasing at a rate of 2 percent
per year (g = .02)?

Added by Victor B.

Question

Please give Ace some feedback