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Modify the Solow Growth model by including government spending as follows. The government purchases G units of consumption goods in the current period, were G = gN and g is a positive constant. The government finances its purchases through lump-sum taxes on consumers,where T denotes total taxes, and the government budget is balanced every period, so that G = T. Consumers consume a constant fraction of disposable income - that is, C = (1 s) (Y T), where s is the savings rate, with 0 < s < 1.1. Derive equations for(a) The law of motion of capital per worker over time (i.e. the relationship between k0 and k).(b) The solution for steady state capital per worker k.
Show the competitive position of 5 or more different firms within this industry
Explain why should you, as a future employe, be concerned about the downward trend in labor productivity increases that have been observed since the early 1970s.
In an attempt to curb the problem of unemployment and win the forthcoming elections the government of the republic of zambia has decided.explain the types and causes of inflation.
Assume that the position of a contry's long-run aggregate supply curve has not changed, but its long-run equilibrium price level has increased.
Assume that tuition prices suddenly go up 20 percent. What impact will this single price increase have on the CPI.
What are the equilibrium quantity and price? How much consumer surplus exists in this market? If a $2 excise tax is levied on this good, what will happen to the equiilibruim price and quantity? What will the consumer surplus be after the tax?
The Yankees have determined that there are 3-groups of purchaser for their tickets. They have determined that the price elasticity of demand for group one is -1.02,
Over the years, Janjigian Company stockholders have provided $15,250 of capital, part when they bought new issues of stock and part when they allowed management to retain some of the company's earnings.
Assume if the objective is to increase total income, should the price be increased or decreased. Explain.
Assume the price of product B, increases from $1 to $1.50. As a result, the quantity demanded of product "A increases from 500 to 600 a month. This indicates that the cross-price elasticity and relationship between the two products.
Illustrate role do property rights play in creating common property resources? Why are common property resources subject to market failure due to nonexcludability.
Describe how the topic you select relates to the growth of United State banking overseas. Include data how your topic contributes to interdependence among economies and financial markets, and to global financial stability.
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