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Consider Solow's model when the production function is Y = 1000K0.3L0.7 . The population growth rate is 2%, ? = 0.1 is the depreciation rate and s = 0.25 is the savings rate.
Suppose this economy was in its steady state when unexpectedly Total Factor Productivity increases by 10%.
a) Compute how much more output there is in this economy immediately thanks to this improvement in technology.
b) Assume that the economy has made the transition towards its new steady state. Perform a growth accounting exercise: given the initial and the final steady states, compute how much of growth per unit of labor is accounted for by the increase in capital per unit of labor and how much is accounted for by the technological improvement.
c) Discuss to what extent the result of this accounting exercise is correct. Remember that the savings rate did not change at all.
If the quantity of output demanded at every price level increases by $1 trillion, Illustrate what happens to equilibrium output also prices.
Which of the following is best defined as a consciously coordinated social unit, composed of two or more people, which functions on a relatively continuous basis to achieve a common goal or set of goals?
Illustrate what must the drivers have the drivers believed about the price elasticity of demand for taxi rides
The country of Meditor uses the merit as its currency. What were its consumption and government expenditures on goods and services.
What is the standard deviation for the class? b. What percentile did you score in?
How much should it raise government spending, if the government looks to raise income to 3000.
If operating capital is running $60,000,000 and employment is running 4,000 employees in the company, what is the value of the marginal rate of technical substitution between operating capital and labor in the Biddle Company?
increases the equilibrium GDP also the size of that increase varies directly with the size of the MPC
No additional working capital is needed and no working capital will be returned. If your tax rate is 35% and you require a 14% return on your investment, what bid price should you submit?
Assume that the dairy industry is initially in a perfectly competitive equilibrium. Assume that, in the long run, the technology is such that average cost is constant at all levels of output. Suppose that producers agree to form an association and be..
Explicidate that a profit-maximizing bundle will typically not exist for a technology that exhibits increasing returns to scale as long as there is some point that yields a positive profit.
Ilustrate what concern would you have about this sale and or lease back contract. Explain how would you price these two events differently.
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