Order the answer to: Prove each of the following statements about the steady state

Order the answer to: Prove each of the following…

Question	Prove each of the following statements about the steady state with population growth and technological progress. a. The capital–output ratio is constant. b. Capital and labour each earn a constant share of an economy’s income. [Hint: Recall the definition MPK = f(k + 1) ? f(k).] c. Total capital income and total labour income both grow at the rate of population growth plus the rate of technological progress, n + g. d. The real rental price of capital is constant, and the real wage grows at the rate of technological progress g.
Subject	business-economics

Question

Prove each of the following statements about the steady state with population growth and technological progress.
a. The capital–output ratio is constant.
b. Capital and labour each earn a constant share of an economy’s income. [Hint: Recall the definition MPK = f(k + 1) ? f(k).]
c. Total capital income and total labour income both grow at the rate of population growth plus the rate of technological progress, n + g.
d. The real rental price of capital is constant, and the real wage grows at the rate of technological progress g.

Subject

business-economics

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