You are the chief economic advisor to the President of a country with an aggregate (per capita)production function of y= 2√k. The savings rate is 8% of output, the rate of depreciation is 10%, and population growth is 2%. There is no technological progress. a) On one graph, show the output, break-even investment (depreciation plus population growth), and savings functions for this economy (as a function of capital per worker). Denote steady state capital per worker k∗.
b) What is the numerical value of this economy’s steady state level of capital per worker? Output per worker?
c) If the economy’s original level of capital per worker is 4 units, describe how the economy works its way toward the steady state. Specifically, what is the numerical value of investment at k = 4? What is the numerical value of investment necessary to break even at k = 4? What do these variables tell you about what is happening to the capital stock?
d) If this country’s population growth rate increases to 8%, what would the new (numerical) value of capital per worker be? Output per worker?
e) How fast is this country growing in the steady state?
f) If technological progress (the growth rate of technology) increased to 3%, how fast would this country grow in the steady state?

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Bridgeport company began operations at the beginning of 2018. the following information pertains to this company. 1. pretax financial income for 2018 is $115,000. 2. the tax rate enacted for 2018 and future years is 40%. 3. differences between the 2018 income statement and tax return are listed below: (a) warranty expense accrued for financial reporting purposes amounts to $7,500. warranty deductions per the tax return amount to $2,200. (b) gross profit on construction contracts using the percentage-of-completion method per books amounts to $94,700. gross profit on construction contracts for tax purposes amounts to $67,100. (c) depreciation of property, plant, and equipment for financial reporting purposes amounts to $61,800. depreciation of these assets amounts to $75,700 for the tax return. (d) a $3,600 fine paid for violation of pollution laws was deducted in computing pretax financial income. (e) interest revenue recognized on an investment in tax-exempt municipal bonds amounts to $1,500. 4. taxable income is expected for the next few years. (assume (a) is short-term in nature; assume (b) and (c) are long-term in nature.) (a) prepare the reconciliation schedule for 2017 and future years. (b) prepare the journal entry to record income tax expense for 2017. (c) prepare the income tax expense section of the income statement beginning with “income before income taxes.” (d) determine how the deferred taxes will appear on the balance sheet at the end of 2017.