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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 the importance of measuring price fluctuations? How does the change in average price help explain the difference between nominal and real interest rates? (Macro economics, course number AB204)
The owner of an exhaustible resource should ________ current extraction rate if the expected price increase of the resource is ________ the interest rate.
A friend borrows $1280 today and promises to pay you back $2190 in 5 years. If inflation is expected to be 3.9% per year during this time, what is the inflation-adjusted rate of return per year? the real rate of return per year?
According to the human skills theory of comparative advantage, developing countries would be expected to have a(n). After-transfers family income is the sum of
Statistical analysis indicates that a=0.8 and b=0.3. The firm's owner claims the plant has increasing returns to scale.
Explain how is the cross elasticity theory used to empirically define economic markets.
Identify the IP rights that are owned by an organization you currently or formerly have worked at. Next, explain which intellectual property appears the most difficult for a business owner to protect.
Show the effect of each of the following events on the market for coffee by stating 1) if the equilibrium price went up, down, or stayed the same and 2) if the equilibrium quantity went up, down, or stayed the same.
If an individual is taxed at a 17 percent rate for each extra dollar earned, the reference is to the
Analyze the economic impact of major social problems and issues such as poverty, discrimination, crime, income distribution, the role of government, and other major issues.
What evidence have you discovered that points to the Classical, Keynesian, and Monetarist theories being debated today? What is supply-side economics? Does it oppose the Classical, Keynesian, or Monetarist theory? How does supply-side economics affec..
Herbert spends all $50 of his pay check on food and shelter which each cost $5 per unit. What is the equation of his budget line?
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