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a) Is it possible for a country to save TOO MUCH? What is the long run goal assumed in the Solow growth model, and how is saving supposed to help achieve it?
b) Provide a graph of the Solow model, indicating the position of the golden rule level of saving (SR), and explain why it is preferred.
c) Indicate on the same graph the steady state for a country that is saving TOO MUCH., and explain why this is an inderior situation.
Suppose that in response to learning that some sick individuals were denied health insurance, the government mandates that insurance companies must offer insurance to everyone at unregulated rates.
A tariff I ssimply a tax on imports. Use our model of the excise tax (with diagram) to expain why domistic firms request that tariff? Consider both the domestic and the foreign country in your answer
You are a member of the City Council of Mid ville , California, a town of 10,000 residents, comprised primarily of 'middle-class' blue-collar laborers.
Use the data in the table to the right to answer the following questions. What is the external cost per unit of production? What level is produced if there is no regulation of the externality?
Let's say there's a world-wide influenza pandemic. Assume that the marginal cost (supply) of influenza vaccinations is constant at $40. Assume that everyone in society has health insurance that pays 80% of all medical services
Compute the path of the economy, that is , calculate real GDP, the price level, the inflation rate and real money stock for each year until GDP I swithin 1% of the potential. (limit calculated values to 10 decimals points)
Assume you hire a furloughed Wall Street analyst to aid you examine your production process, and she uses your historical cost records to estimate that your total cost function is C(Q) = 100 + 2Q + 3.5Q2. Using this equation, answer the following ..
Plot the wage- setting and price setting equation or a property labelled graph and identity the nature rate of unemployment.
Use the IS/LM model and the IS-PC-MR model to explain what monetary policy to pursue.
Suppose that a chair manufacturer is producing in the short run (with its existing plant and equipment). The manufacturer has observed the following levels of production corresponding to different numbers of workers:
Suppose you are reviewing an isocost graph. The axis on the graph shows capital units on the vertical axis, and labor units on the horizontal axis.
Consider a competitive market for which the quantities demanded and supplied (millions per year) at various prices are given as follows:
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