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Consider the neoclassical growth model with Cobb-Douglas technology y(t) = Ak(t)α (expressed in per capita terms) and log preferences. Characterize the equilibrium path of this economy, and show that as α → 1, the equilibrium path approaches that of the baseline AK economy. Interpret this result.
What is the appropriate fiscal and monetary policy mix?
Professor Goodheart gives 3 midterm exams. He drops the lowest score and gives each student her average score on the other two exams. Polly Sigh is taking his course and has a 60 on her first exam. Let x2 be her score on the second exam
If your bank held 3% of the units issued by a unit trust and the mortgages in the trust repaid $15,000,000 in interest and $2,300,000 in principal in its first year, how much principal and interest would your bank receive that year
1. one hundred compressors of 200 h.p. rating are being considered for purchase by the state highway department. the
show what happens to the nominal interest rate and the equilibrium quantity of loans when both borrowers and lenders increase their estimates of the expected inflation rate from 5 percent to 10 percent.
Full-employment level of real output is $250 and the initially the price level is 100. Use the short-run aggregate supply schedules above to answer the questions that follow a)What will be the level of real output in the short run if the price leve..
In order to determine whether time is being spent optimally, a commercial fisherman has recorded the following information over the past year: "hours spent fishing" and "quantity of fish caught." What is the marginal product of fishing for hour sp..
1)The operations manager for a local bus company wants to decide whether he should purchase a new small, medium, or large bus for his company.
Howard Bowen is a large-scale cotton farmer. The land and machinery that he owns has a current market value of $4 million. Bowen owes his local bank $3 million. Last year Bowen sold $5 million worth of cotton. His variable operating costs were $4...
Is there a similarity between the Capability Maturity Model and COSO's Internal Control Integrated Framework? How do they differ? Be sure to supsort your ideas with well thought ideas.
The firm's production manager claims that the firm's average cost of production is minimized at an output of 40 units. Furthermore, she claims that 40 units is the firm's profit maximizing level of output. Explain whether these claims are correct.
Suppose that this year's money supply is $500 billion, nominal GDP is $10 trillion, and real GDP is $5trillion. What is the price level and the velocity of money.
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