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Given a Cobb- Douglas production function (follow the Appendix 3.2 to the chapter for further detail and practice)
Y (t) = K(t)α L(t) 1-α
where K (t) and L (t) are capital and labor respectively at time t. Assume population growth n and capital depreciation δ.
1. Write down important assumptions of Solow growth model
2. What is the steady state capital per capita, k*, and explain about it.
The model of the steady-state rate of unemployment assumes that the size of the labor force is fixed. If the size of the labor force is allowed to vary: please tell me how the job-loss and job-finding processes will differ from the situation when the..
Why is it so important for marketing managers, when engaged in marketing planning, to successfully deal with both Marketing (Big M) and marketing (little m) elements? What would be the likely negative outcome if a marketing plan paid a lot of attenti..
In a system in which there is an administered exchange rate, what is the term used when the government sets the rate higher to buy fewer units of foreign currency?
You are the manager of a midsized company that assembles personal computers. You purchase most components – such as random access memory (RAM) – in a competitive market. Based on your marketing research, consumers earning over $80,000 purchase 1.5 ti..
the comnpany offered to pay his debts in one lump sum if he would pay the company $308.29 per month for the next 36 months. What monthly rate on interest is the loan company charging on his transaction?
A furniture maker has an order for 94 identical tables. If the furniture maker estimates his learning curve at 87% and can reach steady production of 7 hours per table on the 7th table, how long should it take to make all the tables? Express your ans..
Evaluate the fundamental arguments between Keynesians and Monetarists concerning the level of government involvement in our economy to minimize the impact and stabilize the different stages of the business cycle.
_____ focuses on how individuals manage a global business.
the monopoly will experience a loss the monopoly will earn a profit the monopoly will earn zero profit consumers will be worse off than they would be if the firm's profit maximization activities were unregulated
Explain how much smaller (in percentage terms) is each generation than the previous generation.
Suppose the government sets an effective price floor (that is, a price above equilibrium) in the market for oranges and agrees to buy all oranges that go unsold at that price. The oranges purchased by the government are discarded.
What would happen to the amount of economic investment made today if firms expected the future returns to such investment to be very low.
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