Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Using the physical capital resource constraint: K; = M, + R; and your answer to b., show that output per capita can be written as

image text in transcribed
Using the physical capital resource constraint: K; = M, + R; and your answer to b., show that output per capita can be written as a function of kt and rt. (5 points) Write-down in per capita units the equilibrium law of motion for the aggregate physical capital. (5 points) In the situation in which automation does not exist: (2 = 0), derive the steady-state physical capital per capita and the steady-state output per capita. (10 point) Derive an expression for the level of robot per capita maximizing the output per capita. Display in a two-dimensional diagram the output per capita maximizing level of robot per capita as a function of the physical capital per capita. For which levels of physical capital per capita the use of robot becomes Optimal? (15 points) Using your answer to f. show that the resulting expression for the maximized output per capita is linear with respect to the physical capital per capita. (10 point) If it is optimal to use robots, does the economy grow forever or converge to a steady-state solution? Please justify your answer(s). (10 points)

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

The Morality Of Economic Behaviour Economics As Ethics

Authors: Vangelis Chiotis

1st Edition

1351168878, 9781351168878

More Books

Students also viewed these Economics questions

Question

11. To compromise is to take the easy way out of conflict.

Answered: 1 week ago