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Consider an economy with a production function given by Y_t = A*K_t + B*L_tSuppose that individuals save 20% of their disposable income, and that population size is fixed and equal to 1 million.
How would you derive the law of motion for this economy? (i.e. derive an expression for Y_t+1 as a function of Y_t)
How would the law of motion change if the government introduces a 30% tax on all sources of income (wages, capital payments, and profits), and the revenue is used every period to purchase non-durable public goods that have NO impact on total factor productivity?
A researcher is interested in the size of the current balance of credit card holders. To estimate this, he obtains the size of the current balance of a random sample of 25 credit card holders. A 90% confidence interval for the mean current balance..
One of the limiting resources in our economy is time. As a society, we make selection about allocation of time in work and other pursuits.
Elucidate how managers can reduce their firm's financing cost.
This document shows evaluation of alternative approaches to analysing the effectiveness of public policy and Assess the impact of government policies on selected areas.
Explain how the central bank in a modern economy operates; in particular, how it tries to control the monetary base (H), and thus the quantity of money (M) via open-market operations.
Important information about Antitrust policy explain how would you expect antitrust authorities to react.
He define you that the report will be handed out to the staff prior to the staff meeting next week and that it should outline the various forms of market structure.
India's policies against exchange rates, foreign trade, domestic monetary systems and foreign policy. Also expand into how the political situation in India has effected the country economically.
Assume two firms, A and B, serve a market with demand D(p) = 11 - p. Also assume that (i) firms compete for market share
The following information describes a hypothetical economy (assume all numbers are in billion if necessary) Determine the value of the MPC of this economy?
The "club" makes it difficult for a car thief to take your car. Lojack makes it easier for the police to catch the car thief who has stolen it.which one conveys a positive externality.
Describe the lower price alter the marginal utility you originally placed on the item.
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