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Mathematics, 25.10.2019 17:43 ykluhredd
Suppose that the future economy-wide production function is y = 20k − 0.01k 2 , where k is the future capital stock. the depreciation rate of capital, d, is 20% per period. the current capital stock is 900 units of capital. the price of a unit of capital is 1 unit of output. firms pay taxes equal to 15% of their output. households consumption depends on income and the interest rate such that c = 100 + 0.5y − 200r, where c is consumption, y is output, and r is the real interest rate. government purchases equal 200, and full-employment output is 1000. 1. what is the future marginal product of capital in this economy?
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Suppose that the future economy-wide production function is y = 20k − 0.01k 2 , where k is the futur...
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