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Q1. Assume that a "leader country" has real GDP per capita of $40,000, whereas a "follower country" has a real GDP per capita of $20,000. Next suppose that the growth of real GDP per capita falls to zero percent in the leader country and rises 7% in the follower country. If these rates continue for long periods of time, how many years will it take for the follower country to catch up to the living standard of the leader country?
Q2. China has enforced the one child policy since 1979 to curb its population explosion. Suppose that china population L was growing at the constant rate no before the one child policy; after the introduction population growth drops to the constant rate n1 analyze the effect of this policy using continuous-time Solow model without technical progress.
Suppose the interest rate on 6-month treasury bills is 7 percent per year in the United Kingdom and 4 percent per year in the United States.
Explain how the short-run Phillips curve, the long-run Phillips curve, the short-run aggregate supply curve, the long-run aggregate supply curve, and the natural rate hypothesis are all related.
Compare and contrast the way Classical and Keynesian theory determine the Demand for Money and how it is related to the Money Supply
What is output that should be produced to achieve economic efficiency and the value to society for correcting the externality.
Profits associated with polluting for Friedman Inc. are π = 40Q - 2Q2, where Q = pollution emitted (in tons), and profits are measured in dollars.
Explain the process of how that movement occurred using behaviors of consumers and suppliers. Graph the movement between the two points as well.
Analyze the USA financial meltdown that happened in 2008-2009. This crisis was partially caused by the reward systems that were in place for participants in the financial system. Identify the major participants in the financial system.
Their banks are holding back credit so it is harder for businesses to invest and for consumers to spend
Why the short-run demand for gasoline is less elastic than the long-run demand, when the price of gasoline rises, people immediately cut back on unnecessary trips.
Explain an economy is initially in equilibrium at the natural level. The central bank increases the money supply.
What steps can a government take to ensure that sustainable development is always considered in assessing which major economic projects or investment proposals to accept.
To one side maximizing profits evaluate the factors which managers must consider when making judgment to outsource or integrate forwards/backwards considering which factor would be mainly significant for decision-making.
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