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In an application of the Harrod-Domar model, suppose the only final-goods industry in a country is the making of cotton shirts. The factories, machinery and warehouses used in production were purchased previously and are still worth $3 billion. Each year, 66,700 workers are employed in the production of shirts with annual salary and benefits of $15,000 per year. It costs $50 million for cotton fabric and other inputs, such as electricity, to be used in making the shirts. The country produces and sells 100 million shirts a year, at an average price of $15 per shirt.
What percentage of GDP goes to each of: workers, owners of capital and input suppliers?
q1. what is the capitalized cost of expenditures of 3000000 now 50000 in months 1 through 12 100000 in months 13
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Explain how absolute and comparative advantages were used in your simulation.
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