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If a country has a current account deficit, this is often referred to as a situation where the country is “spending beyond its means.” What does this phrase mean in terms of the simple Keynesian model? Does the existence of the current account deficit imply that the country as a whole is a dissaver (i.e., that saving is actually negative)? Why or why not?
Consider a Solow economy with the following Cobb-Douglas production function: The capital share of output (a) is 25%, population growth (n) is 1.5%, and the depreciation rate (δ) is 4%. The economy is in steady-state with a growth rate of output per ..
The distribution of annual net cash flows is approximately normal. Determine the probablity that the annual net cash flows will be negative. Discuss the probability that the annual net cash flows will be less than $20,000
q1. using supply and demand analysis to predict the effect of e-commerce on equilibrium output and equilibrium price of
Determine whether the Justice Department would challenge a merger between two firms in an industry with 10 equal-sized firms.
Which of the following is most likely to cause variation in American household spending patterns?
Suppose that a rm has the production function given by f(x1,x2)=4SQRT(x1*x2) Let w1 = $64 and w2 = $1. What is the total cost of producing 20 units of output in the long-run?
The Bureau of Labor Statistics announced that in October 1996, of all adult Americans, 127,587,000 were employed, 7,221,000 were unemployed, and 66,645,000 were not in the labor force. How big was the labor force? What was the labor-force participati..
Were Free Marketers correct in their defence of American Capitalism? What is the legacy of neoliberlism today? What does the past history of our country suggest will be the response?
If the population of Romania was about 22 million in 2010 and the average population growth rate is 0.2 percent, then calculate Romania’s population level in 1970.
Suppose a Japanese company discovers a way to split its production process for televisions into two tasks: component production and assembly, and assembly can be offshored to Indonesia. Together, 0.8 units of production labor and 0.2 units of assembl..
The key condition for equilibrium to occur in a market is: Without taxes, the market price per bag of apples is $5. With a $2 tax per bag of apples, buyers now pay $5.75 per bag. What is the final price per bag of apples received by sellers?
Suppose the government implemented a negative income tax and used the following formula to compute a family's tax liability: Taxes owed= (1/3 of income)-$15,000. A family earning $60,000 before taxes would have how much after-tax income?
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