This paper concentrates on the primary theme of CONSIDER THE SOLOW GROWTH MODEL AS DESCRIBED IN THE PRECEDING EXERCISE AND INCLUDE GOVERNMENT SPENDING. THE GOVERNMENT PURCHASES G = LG UNITS OF CONSUMPTION GOOD IN THE CURRENT PERIOD WITH G A POSITIVE CONSTANT. THE GOVERNMENT FINANCES ITS PUBLIC PURCHASE in which you have to explain and evaluate its intricate aspects in detail. In addition to this, this paper has been reviewed and purchased by most of the students hence; it has been rated 4.8 points on the scale of 5 points. Besides, the price of this paper starts from £ 40. For more details and full access to the paper, please refer to the site.
If the production function is given by yt = log(kt), n = 0:05, and d = 0:1, and savings is a fixed fraction of output, calculate the steady-state level of consumption per unit of labor. Plot the steady-state level of consumption per unit of labor as a function of s. Show that it is maximized when 1 k = 0:15.