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Assume that a “leader country” has real GDP per capita of $40,000, whereas a “follower country” has real GDP per capita of $20,000. Next suppose that the growth of real GDP per capita falls to zero percent in the leader country and rises to 5 percent in the follower country. If these rates continue for long periods of time, how many years will it take for the follower country to catch up to the living standard of the leader country?
Discuss examples from economic theory that would be estimated using the methods of simultaneous equation models
q. under what elasticity conditions would the following be trueincreasing the minimum wage will result in a decrease in
The estimate of the natural rate of unemployment shows an increasing trend during the 1970s and the early 1980s, and a declining trend in the 1990s. One of the explanations of this change in the natural rate of unemployment is based on the demographi..
A contractor is considering whether to buy or lease a new machine for her layout site work. Buying a new machine will cost $12,000 with a salvage value of #1200 after the machine's useful life of 8 years. On the other hand, leasing required an annual..
You borrow $25,000 from your local credit union at 12 percent compounded monthly. You repay the loan by making equal monthly payments over the next four years. How much interest is in the 23rd payment?
What are the four market types? Give an illustration of each. From a social standpoint, what is the problem with monopoly? Discuss this using an example for illustration.
Describe how the system converges to its new equilibrium. What happens to the equilibrium wage in the long run? What happens to the equilibrium population size in the long run?
A firm's production function is qi = .2*Ki.2Li.4. The wage rate in this area is w = $15, and the cost of capital is r = .05. a. Find the firm's short run cost function, if Ki is fixed at $100,000. b. If the good is exported around the world at a pric..
q.given the significant trend of declining oil price and expected independence of oil production by us in coming decade
Now suppose the factory develops an innovation that allows it to produce a shirt for the equivalent of 1 loaf of bread. What is the new radius of the factory's market area.
The Occupational Safety and Health Administration promulgates safety and health standards. These standards typically apply to machinery (capital), which is required to be equipped with guards, shields, and the like. An alternative to these standards ..
Illustrate what is projected credit markets. How do you use this to make business decisions. Also how would investment or returns on excess cash affect a auto business.
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