2011 Macro questions

[Ankit]

Can somebody help me with last set of macro questions here?http://economicsentrance.weebly.com/uploads/1/1/0/5/1105777/2011-option-a.pdf

Thanks :)

[yushi.]

Y= A K^a L/L^a
Y= A (K/L)^a  L
Y/L= A (K/L)^a
y= Y/L , k= K/L
y= A k^a

at steady state, change in k is zero i.e, s.y= n.k
s A k^a= nk
1/4 20 k^1/2= 1/10 k
k= 50^2 at steady state.

similarly for golden rule, MPk=n...

[maahi]

q 58  plz tell this one

[yushi.]

my ans for 58 is coming wrong too...

[Prerna Rakheja]

k* = 10,000 ==> y* = 2000

To find the savings rate at which steady state capital per worker equals to golden rule steady state capital per worker, it must be that

s*f(k*) = nk*
s*2000 = 1/10 (10,000)
s*= 1/2 ==> i* = 1000

y* = c* + i*
Therefore, c* = 1000

[maahi]

yay ! high 5 that was gud :-) can u try d last bunch of ques here ?/http://discussion-forum.2150183.n2.nabble.com/dse-2007-plz-help-tp7582915.html;cid=1372423889618-496

[sakshi]

plz help . when i did mpk = n i got
Aa k^1-a = 1/10
so by putting values i m getting 1/10000 = k
i kow i m wrong somewhere but where plz tell

[sakshi]

i got  it where i was wrong.... oops..!!!