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{"ops":[{"insert":"Consider the Cobb-Douglas production function in continuous time, \ud835\udc80(\ud835\udc95) = \ud835\udc72(\ud835\udc95)"},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":"\ud835\udfcf"},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":"\ud835\udfd2(\ud835\udc6f(\ud835\udc95))"},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":"\ud835\udfd1"},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":"\ud835\udfd2,"},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":"\ud835\udc6f(\ud835\udc95) = \ud835\udc00(\ud835\udc95)\ud835\udc73(\ud835\udc95), \ud835\udc8c\u0307(\ud835\udc95) = \ud835\udc94\ud835\udc87(\ud835\udc8c(\ud835\udc95)) \u2212 (\ud835\udc88\ud835\udc68 + \ud835\udc8f + \ud835\udf39)\ud835\udc8c(\ud835\udc95),"},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":"\ud835\udc68\u0307(\ud835\udc95)"},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":"\ud835\udc68(\ud835\udc95)"},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":"= \ud835\udc88\ud835\udc68,"},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":"\ud835\udc73\u0307(\ud835\udc95)"},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":"\ud835\udc73(\ud835\udc95)"},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":"= \ud835\udc8f \ud835\udc9a(\ud835\udc95) = \ud835\udc84(\ud835\udc95) +"},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":"\ud835\udc8a(\ud835\udc95) + \ud835\udc88(\ud835\udc95), where, \ud835\udc88(\ud835\udc95) = \ud835\udf48\ud835\udc9a(\ud835\udc95) and \ud835\udf48 > \ud835\udfce. Answer the following questions-"},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":"(i) Derive the intensive form production function in per-capita terms. (1 Mark)"},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":"(ii) what is the steady-state and Golden-rule level of capital-output ratio and consumption? (2 "},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":"Marks)"},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":"(iii) Explain the effect of government expenditure on output at the golden rule"},{"insert":"\n"}]}

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