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a) Is it possible for a country to save TOO MUCH? What is the long run goal assumed in the Solow growth model, and how is saving supposed to help achieve it?
b) Provide a graph of the Solow model, indicating the position of the golden rule level of saving (SR), and explain why it is preferred.
c) Indicate on the same graph the steady state for a country that is saving TOO MUCH., and explain why this is an inderior situation.
The rising stock market implies an increase in wealth, at least as measured on paper. If we assume that some of this increased wealth gets consumed, then the rising stock market fuels an increase in aggregate demand, and may contribute to an inflatio..
Explain which of the following transactions would be directly counted in 2007's GDP. In each case, explain whether the action causes an increase in Consumption, Investment, Govt. Purchases or Net Export.
You will be asked to collect five (5) newspaper articles relating to subjects we are covering in the class. As we cover the various chapters you should be actively searching newspapers/magazines to find articles.
Discuss the feasibility of lower middle or low income countries resorting to fiscal stimulus to stave off recessions in their own economies. You can use one or more countries as examples.
A profit-maximizing monopolist never produces in the inelastic part of a linear demand curve. The short-run supply curve of a competitive firm is its MC curve.
Suppose the market for widgets can be described by the following equations: What is the equilibrium price and quantity?
Identify trends or other patterns in inflation within the an economy of your choice over the last five years using quarterly data from the Central Bank or other Government based Statistical agency websites as a source.
Assume the new leadership in Congress decides to repeal some of the tax breaks granted to large businesses throughout the past several years. What impact will the repeal have on the exporting of jobs to foreign countries? describe by using isoquant ..
What is the marginal opportunity cost of services in each country? Who has the comparative advantage in factory-stuff?
According to the neo-classical economic theory, the market is a natural, self-regulating system that tends automatically towards the full employment equilibrium of supply and demand.
This problem uses Okun's law to study how the unemployment and inflation rates change when there are demand shocks.
Graph these data using "dollars" on the vertical axis and "quantity" on the horizontal axis. At what output is revenue maximized?
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