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Suppose the level of technology is constant. Then it jumps to a new, higher constant level.
a. How does this technological jump affect output per head, holding the capital-labor ratio constant?
b. Show the new steady-state equilibrium. What has happened to per capita saving and the capital-labor ratio? What happens to output per capita?
c. Chart the time path of the adjustment to the new steady state. Does the investment ratio rise during transition? If so, is this effect temporary?
Calculate measured employment and unemployment and the measured labor force for each economy. Calculate the measured unemployment rate and participation rate for each economy. In which economy is measured GDP higher?
the following table gives the joint probability distribution between employment status and college graduation among
The Acme chemical company paid $45000 for research equipment, which it believes will have zero salvage value at the end of its 5 year life. If the straight line (SL) method is used, what will be its value after 2 years
In what kind of market structure does the firm sell its output How can you tell b. In what kind of market structure does the firm rent robots? How can you tell c. Calculate the marginal product and the value of the marginal product for each additiona..
Holiday Fruit Company buys oranges and processes them into gift fruit baskets and fresh juice. The company grades the fruit it buys on a scale from 1 (lowest quality) to 5(highest quality).
Consider a closed economy to which the Keynesian-cross analysis applies. Consumption is given by the equation C = 200 + 2/3(Y - T). Planned investment is 300, as are government spending and taxes.
? What is the relationship between the terms of trade in a world of two trading nations? How are the terms of trade measured in a world of more than two traded commodities?
Explain why the difference between these wage rates equals the cost of acquiring human capital.
Rob currently earns a salary of $1,000 per week as an economics instructor. His next best career would have been an assistant manager at Pizza Hut, where he would have earned $12 per hour, and would have worked for 40 hours per week.
The following table contains data for a hypothetical open economy. The amount of investment spending is unknown. According to the savings-investment spending identity for an open economy, what is the amount of investment spending in this economy.
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
Your marginal cost for producing a Hair Grow pill is $1. What is the profit-maximizing price and quantity? What is your profit? Suppose your production facility can only produce 1,000,000 pills. What is your optimal price and quantity given the ..
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