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Social security in the Diamond model. Consider a Diamond economy where g is zero, production is Cobb-Douglas, and utility is logarithmic.
(a) Pay-as-you-go social security. Suppose the government taxes each young individual an amount T and uses the proceeds to pay benefits to old individuals; thus each old person receives (1 + n)T.
(i) How, if at all, does this change affect equation (2.60) giving kt +1 as a function of kt?
(ii) How, if at all, does this change affect the balanced-growth-path value of k?
(iii) If the economy is initially on a balanced growth path that is dynamically efficient, how does a marginal increase in T affect the welfare of current and future generations? What happens if the initial balanced growth path is dynamically inefficient?
what are the benefits of adopting international accounting standards for a investors and b business enterprises? what
How might the Fed respond to a problem of substantial unemployment? How might the Fed respond to a problem of high inflation? Can the Fed fight both inflation and unemployment?
In the short run, if the economy has a recessionary gap, an increased government budget deficit resulting from higher government spending or lower taxes is most probable to. Decrease aggregate demand, reduction process and increasing the recessionary..
Important economic indicator affecting your organization and explain why - Gross Domestic Product
1 given the following reliabilities of components bridge will not collapse in a series with reliabilities indicated.
What is a Literature Review?"A literature review discusses published information in a particular subject area, and sometimes information in a particular subject area within a certain time period.
Explain why there is a blurry line dividing objects that are “money” from those that are not. Give examples of some clear-out cases? And some borderline ones. Could the position of this blurry line change over time?
Explain the use of cost-benefit analysis in managing environmental matters. Evaluate its appropriateness as a decision-making tool for environmental issues.
Affect resource conservation and the speed of depletion?
calculate the growth rates log difference of per capita gdp for each country in each year. calculate the mean and
regarding the four attributes of perfect competition (many small firms, freedom of entry, standardized product, and perfect information): a) which is primarily responsible for the fact that the demand curve of a perfectly competitive firm is horiz..
Show how you would interpret the third paragraph of this report using this chapter's model of exchange rate determination. What additional factors in exchange rate determination might help you explain the second paragraph?
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