* Once your purchase is processed by paypal you will be redirected back to this page and you'll have the option to download the paper. We'll also send the paper to your paypal email address as proof of purchase.Download Paper
Write a paper illustrating and comparing the difference of economic growth between china and Hong kong
Comparison Between The Growth Of China And Hong Kong
Length: 4 pages (1100 Words)
Calculate the initial values of y and k. Verify that the economy is on a balanced growth path.
k = 1600000/0.1 = 16,000,000
y= 160000001/2 = 4000
Suppose the savings rate rises to 50%. Calculate the values of y, k, actual investment (sy), and balanced-growth investment (nk) for the next year. (Hint: k1 = k0 + nk0 )
K1 = 16000000 + 0.5 X 16000000 = 24000000
y1 = 240000001/2 = 4899
When technological growth rate decreases, output reduces proportionately because the method of production becomes insufficient. Technological reduction results to loss of capital in the long run because more capital is used to produce less output.