I've got some intermediate macroeconomics homework to do, and was wondering if anybody was good at econ here. Will pay points if you answer a few of the questions. Here's an example
1. An economy described by the Solow growth model has the following production function:
y = √k
a) Solve for the steady state value of y as a function of s, n, g and δ.
b) A developed country has a saving rate of 28 %, and a population growth rate of 1 % per year. A less
developed country has a savings rate of 10 % per year and a population growth rate of 4 % per year. In both
countries g = 0.02 and δ = 0.04. Find the steady state value of y for each country.
c) What policies might the less-developed country pursue to raise its level of income?
1. An economy described by the Solow growth model has the following production function:
y = √k
a) Solve for the steady state value of y as a function of s, n, g and δ.
b) A developed country has a saving rate of 28 %, and a population growth rate of 1 % per year. A less
developed country has a savings rate of 10 % per year and a population growth rate of 4 % per year. In both
countries g = 0.02 and δ = 0.04. Find the steady state value of y for each country.
c) What policies might the less-developed country pursue to raise its level of income?