Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Let us assume that all economies were at the steady-state in 1820 and the output per capita at time t was described by the following

Let us assume that all economies were at the steady-state in 1820 and the output per capita at time t was described by the following aggregate production function:

yt = At (X/Nt)1/3

where At stands for the aggregate productivity level at time t, X denotes the fixed stock of land used in agriculture and Nt represents the aggregate population size at time t.

a. Derive a relationship between the growth rate of the output per capita from time t to t+1, and the growth rate of the aggregate population from time t to t+1 under the assumptions that productivity grows at a constant rate .

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Green Jobs For Sustainable Development

Authors: Ana Maria Boromisa, Sanja Tišma

1st Edition

131775185X, 9781317751854

More Books

Students also viewed these Economics questions

Question

explain the negativity bias;

Answered: 1 week ago

Question

What has been your desire for leadership in CVS Health?

Answered: 1 week ago

Question

Question 5) Let n = N and Y Answered: 1 week ago

Answered: 1 week ago

Question

5. How quickly can we manage to collect the information?

Answered: 1 week ago

Question

3. Tactical/strategic information.

Answered: 1 week ago

Question

3. To retrieve information from memory.

Answered: 1 week ago