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1. Describe the Harrod-Domar growth model, and explain precisely how the model illustrates dynamic instability. Why is it often called the “knife’s edge model”?
2. After reading about the Solow growth model, which concludes that continued economic growth requires continual innovation, and Schumpeter’s dynamic growth model, does the combination of these two models provide an adequate model of technological change and economic growth? What exactly determines the rate of technological progress? Finally, how would you work the variables contained in these models into the Harrod-Domar growth model?
3. Another question lurks behind nearly all discussions of macroeconomic policy: Why should we be so fearful of inflation? Provide your take on the emphasis by most central banks on preventing inflation.
What is value of marginal propensity to consume (MPC) in this model Marginal propensity to save (MPS).
All this is known to both players. Suppose both players behave according to the level-k thinking model discussed in class. Two players simultaneously guess a number.
From the scenario, determine the relevant costs for the expansion decision, and distinguish between the short run and the long run costs.
Explain how the circular flow diagram relates to the current economic situation.
When a war breaks out in the Middle East, the price of gasoline rises, and the price of used Cadillac falls.
Needs advantages or disadvantages of buying imports versus buying domestic products in relation to the fashion industry
q.assume that two firms compete in quantities cournot in a market in which demand is described by p 260 - 2q. every
Assume that marginal propensity to consume is constant at 1/2 and breakeven point is $8,000. If income is $10,000, n how much will be consumed and how much will be saved.
World Trade Center and Pentagon affected short and/or long-term productivity in United States. Elucidate your response and show any movements in PPF.
What is the present value of costs under option A? Under option B? Which is the better option? (b)* Given that she is going to stay in business for another seven years, should she be considering other options??
Who is the winners and losers from using corn to produce ethanol (gasoline)? Identify some of the unintended consequences of using corn to produce ethanol (gasoline).
q. select two of the following topics to discuss within the discussion thread1. converse how average cost narrates to
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