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Characterize the asymptotic equilibrium of the modified Solow/AK model mentioned in Section 2.6, with a constant saving rate s, depreciation rate δ, no population growth, and an aggregate production function of the formF(K(t), L(t)) = AKK(t) + ALL(t).
The French government announced plans to convert state-owned power firms EDF and GDF into separate limited companies that operate in geographically distinct markets. BBC News reported that France's CFT union responded by organizing a mass strike
assume that all wages and prices are completely and immediately flexible. if the growth rate of the money supply is 5
You have the chance to buy either one of two bonds. The first is a tax-free municipal with a coupon yield of 6.5%. The second is a corporate bond with a yield of 8.5%. Both bonds are rated AA. Your tax rate is 28%.
If the price of shoes is set at $75 for both July and August and demand will be D2 in July and D1 in August, how many pairs of shoes should Stromnord order if it wants to end the month of August with exactly zero pairs of shoes in its inventory.
To what extent do these models complement or contradict each other? Discuss.
Using the following information, calculate total utility and marginal utility. a. Plot the total utility curve. b. Plot marginal utility directly below total utility. c. At what marginal utility value does total utility reach a maximum Number of unit..
The monthly wage rate is $3,000 per worker and the monthly rental rate for a machine is $6,000. Currently PowerGuns Co. employs 25 workers and 40 machines. Assume perfect divisibility of labor and machines. A. What is the current average product o..
Assume that you have been hired as a managing consultant by a company to offer some advice that will help it make a decision as to whether it should shut down completely or continue its operations. It currently uses 100 workers to produce 6,000 un..
a. What is the average miles per gallon for city driving b. On average, how much higher is the miles per gallon for highway driving as compared to city driving c. What percentage of the cars have four-cylinder engines
Analyze the steady-state income differences between two economies taxing capital at the rates τ and τ . What are the roles of the parameters α and β in determining these relative differences? Why do the implied magnitudes differ from those in the ..
Using the regression results and other computations from Assignment 1, determine the market structure in which the low-calorie food company now operates.
Inflation affects creditors and debtors. Suppose the Canadian debtors borrowed $100 from the Canadian creditors on December 31, 1992 and promised to pay back $105 on December 31, 1993. This is equivalent to paying back a nominal interest rate of 5..
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