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Neoclassical Model of Investment
In class, we discussed the idea of net investment, and how it could change in response to changes in economic conditions. Consider the following potential changes in the economy and discuss what the immediate impact of these changes will be for the rental price of capital, the cost of capital, and net investment.
(a) Anti-inflationary monetary policy raises the real interest rate (r ↑)
(b) An earthquake destroys part of the capital stock (K ↓)
(c) Immigration of foreign workers increases the size of the labor force (L ↑)
(d) Advances in computer technology make production more efficient (A ↑)
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When the economy is producing the level of output equal to natural real gdp the unemployment rate is equal to?
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You are working as a Support Specialist in the University Information Technology Services (UITS) department at Indiana University, Bloomington (IUB). Your manager, the instructor, has tasked you to review the latest survey on computer user satisfa..
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