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Question: Ruritania's labor, technology, and education levels are constant, and its economy has a production func"on that can be described by Y = 2K" (note: this can also be written Y-2k) The depreciation rate can be described by the linear function d 0.03K. In year 1, the investment rate in Ruritania is-0.25% in year 2, some foreign savings start flowing into the economy and the investment function changes to I = 0.3Y.
What is Ruritania's steady state level of capital and output at the end of year 2?
What is Ruritania's GDP growth rate from the end of year 1 to the end of year 2?
The relative price an equilibrium price?
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Now suppose that the rest of the world has the same technology and pref- erences. In particular assume that the following Öxed coe¢ cient technology applies.
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Solve the following linear program using the graphical solution procedure. Max z = 5x1 + 5x2 s.t. 1x1 ≤ 100
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What is the demand function for processing tomatoes, where the quantity is solely a function of the price of processing tomatoes?
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