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Consider a world economy consisting of countries represented by the augmented Solow growth model with the production functions given by (3.16). Derive the equivalent of the fundamental growth accounting equation in this case and explain how one might use available data to estimate TFP growth using this equation.
How does unionization affect wages and the composition of the workforce?
Suppose a typical consumer buys 20 units of food and 10 units of clothes in the year 2307, when the price per unit of food is 100 and the price per unit of clothes is 200. In 2308, when the typical consumer buys 20 units of food
After Hurricane Katrina, about 250,000 New Orleans residents relocated to Baton Rouge, Lousiana, and as a result, housing prices in Baton Rouge rose from an average of $130,000 for a single family home to $156,000 six months later
Suppose that a monopolists market demand is given by P = 100 - ?2Q and that marginal cost is given by MC = Q/2. a)Calculate the profit-maximizing monopoly price and quantity. b)Calculate the price and quantity that arise under perfect competition wit..
the following regression model has been proposed to predict sales at a computer store. y = 50 - 3x1 + 20x2 + 10x3 where x1 = competitor's previous day's sales (in $1000s), x2 = population within 1 mile (in 1,000s) x3 1.) if radio advertising was u..
Suppose a country's CPI increased from 2.1 to 2.3 in the course of 1 year. Use this fact to compute the rate of inflation for that year. Why might the CPI overstate the rate of inflation?
The manager of a national retailing outlet recently hired an economist to estimate the firm's production function. Based on the economist's report, the manager now knows that the firm's production function is given by Q=K^(1/2) L^(1/2)
A recent study of 50 self-service gasoline stations in the Greater Cincinnati-Northern Kentucky metropolitan area revealed that the mean price of unleaded gas was $2.029 per gallon. The sample standard deviation was $0.03 per gallon.
A monopolistically competitive firm produces a level of output at which price equals $80, marginal revenue equals $40, average total cost equals $100, marginal cost equals $40, and average fixed costs equals $10.
You're playing Dungeons and Dragons, an old-school pen-and-paper role playing game. The game uses an 8-sided die, with the numbers 1-8 on each face. The probability of rolling each number is 1/8. What is the variance of one throw of the die
Second, notice that if z=x/y , then z = x * (1/y). Hence, using the formula mentioned above, g(z)=g(x)+g(1/y). So all you need is find a clever way to calculate the growth rate of the variable 1/y, namely g(1/y).
If a central bank buys government bonds, what happens to interest rates, aggregate demand, and GDP? What happens to these variables if it engages in contractionary monetary policy through open market operations?
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