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Question -
a. Assume that, over a 10-year period, the growth rate of capital is 4 percent, the growth rate of employment is 2 percent, and the growth rate of real output is 5 percent. Calculate the growth rate of technology.
b. Suppose that a permanent cut in the budget deficit increases investment and the growth rate of capital rises by 1 percent. How much does the growth rate of output increase?
c. Suppose that a tax reduction increases the supply of labor by 1 percent in one year. What happens to the growth rate of real output?
Why do you think entrepreneurship is growing around the world? Do you expect this trend to continue, or do you think entrepreneurship's appeal will subside over time?
production function fx1 x2 x1x2. the prices for the inputs are 2 and 8 respectively.a. if x2 is fixed at x210 derive
Running red lights creates potential danger to pedestrians as well as other drivers. But, people run lights all the time because they consider just their additional private benefits from getting through the intersection a bit quicker than if they ..
Often, in an LP model, the opportunity cost of some nonbasic activity is just a few cents away from a zero value. What can be done for discovering.
The equation QA= 1/2(12-Q)b) is the so called reation function of duopolist A in a COurnot model becasue given the value of Qb, Qa gives the best or profit-maximizing level of sales of oligopolist A. Show that this is the case with reference. Wha..
New Light Corporation has just created a solar panel capable of generating 200 percent more electricity than any solar panel currently on the market. As a result, New Light is expected to experience a 15% yearly growth rate for the next 5 years.
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What is one long-run implication for monetary policy shared by both Quantity Theory of Money and the Natural Rate Hypothesis? When we are in a liquidity trap, monetary policy is weak and fiscal policy is powerful." True or False ? Why?
Describe how the world has changed in terms of global trade in the past 10 years. Based on the assigned readings, what do you think developed countries.
If a poor country and a rich country trade with each other, without any restrictions, and the rich country gains $50 million, while the poor country only gains $5 million, is the rich country exploiting the poor country. Please describe in detail.
a company produces an electronic timing switch that is used in consumer and commercial products. the fixed cost cf is
Your firm sells a very popular children's game. As the manager, you have received information that another firm is thinking about introducing a similar game. You have the following facts:
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