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A country is described by the Solow Model with a production function y = k1/2 where y is output per worker and k is capital per worker. Now suppose that the fraction of output invested (or saved) is 50%. Assume that the depreciation rate is 5% and population growth is 0%.
A) Calculate the country's steady state level of output per worker.
B) Now suppose k is equal to 400. Is the country at its steady-state level of output per worker, above the steady-state or below the steady state?
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Assume a certain firm in a competitive market is producing Q = 1,000 units of output. At Q = 1,000, the firm's marginal cost equals $15 and its average total cost equals $11. The firm sells its output for $12 per unit.
The inverse market demand in a homogeneous-product Cournot duopoly is P = 100 – 2(Q1 + Q2) and costs are C1(Q1) = 12Q1 and C2(Q2) = 20Q2.
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After viewing the video multimedia resources, reflect on the challenges facing the U.S. labor force due to outsourcing of jobs overseas.
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Select one principle and create an additional example that will help students understand that principle better. Based on the five economic principles discussed, give your opinion on the one which is the most important and useful concept in your lif..
which of the following is not one of the explicit functions of the federal reserve granted by
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