Suppose two countries are identical in every respect except…

Suppose two countries are identical in every respect except that Country X has a savings rate s=0.27 and Country Y has a savings rate s=0.03. In a constant-returns-to-scale Cobb-Douglas model with α=0.5, what is the ratio of the steady-state capital-output ratio in Country X relative to Country Y?

Consider a closed-economy with taxes proportional to income….

Consider a closed-economy with taxes proportional to income.Consumption: C=1000+0.8Yd, where Yd is the disposal income​, the difference between GDP and TaxesInvestment: I=2000-100r Government spending: G = 0.2Y, where Y is the GDP Taxes: T= 0.25Y Money demand: L=0.25Y−500r, where r is in % term  Real money supply: M/P=1250 Solve for the equilibrium interest rate r (in % term).

Consider a closed-economy with taxes proportional to income….

Consider a closed-economy with taxes proportional to income.Consumption: C=1000+0.8Yd, where Yd is the disposal income​, the difference between GDP and TaxesInvestment: I=2000-100r Government spending: G = 0.2Y, where Y is the GDP Taxes: T= 0.25Y Money demand: L=0.25Y−500r, where r is in % term  Real money supply: M/P=1250 Assume government expenditure increases by 1000. What is the resulting change in output (Y) due to the shift of the IS curve?

Consider a Solow model with constant return to scales Cobb-D…

Consider a Solow model with constant return to scales Cobb-Douglas production and the following parameters to answer the following question. Capital share (α) = 0.4 Savings rate (s) = 0.2 Depreciation rate (δ) = 0.05 Population growth (n) = 0.01 Technology growth (g) = 0.03 What is the value of capital-output ratio if capital growth rate decreases to 0?