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Germany consumers have $50 in income "their gross domestice product". They spend $35 on consumer goods "$25 on Germany goods and $10 on imports", they save $8, and pay $7 in taxes. The government collects $7 in taxes and spends $10 on locally-made goods. Firms borrow $7 and make $7 in domestic investment spending. The government and firms buy no imports what is Germany's current account balance?
A firm has this linear production function: Q = 5K + 2L. Each unit of labor costs $10 to employ and each unit of capital cost $8 to employ. The firm is currently employing 100 units of labor and 200 units of capital. a. Calculate the total number of..
Eisner's bonus was $2.6 million in 1996 and $6 million in 1987. Including the stock options he exercised, his compensation in 1988 was about $41 million, a record at that time for any U.S. executive. In 1993, his total compensation was about $202 ..
Assume that Country A has a population of 500,000 and only produces one good- car. Country A produces 100,000 cars per year. The people in Country A purchase 90,000 cars, but there are not enough cars to fulfill all the demand.
Determine the long-run effects of this on the quantity of capital per worker and output per worker?(b) In the short run, does aggregate output grow at a rate higher or lower than the growth rate of the labor force?(c) After World War II, growth in r..
You currently pay $10,000 per year in a rent to a landlord for a $100,000 house, which you are considering purchasing. you can wualify for a loan of $80,000 at 9% if you put $20,000 down on the house. To raise money for your own downpayment, you w..
If player 1 moves right, player 1 receives $0 and player 2 receives $15. If both players move left, player 1 receives -$10 and player 2 receives $8. If player 1 moves left and player 2 moves right, player 1 receives $10 and player 2 receives $10.
Building on (b), suppose that the worker can earn overtime for each hour above 40 hours worked per week. Her base pay remains at $10/hour, but she earns one and one-half time for each hour beyond 40 hours.
Suppose the interest rate on British and US bonds is the same (5 percent) and the expected future exchange rate (dollars per pound) is $1.52 per pound. Now the interest rate on British bonds suddenly rises to 10 percent.
A new chemical remediation tank is needed. Current technology tanks, which costs $150,000, MUST BE DRAINED AND TREATED EVERY TWO YEARS AT A COST OF $30,000; THE TANKS WILL LAST TEN YEARS, AND EACH WILL HAVE A SALVAGE VALUE OF 5%. OF FIRST COST.
This year 200 workers will lose their jobs, 170 workers will return to the labor force after an absence 1100 workers will voluntaryly leave their jobs, and 50 new workers will enter the labor force. At the same time 726 workers will find jobs, and ..
graph the relationship between output and labor, holding capital constant at its current value. Find the MPN for an increase of labor from 100 to 110. Compare this result with the MPN for an increase in labor from 110 to 120. Does the marginal pro..
Explain why this model violates the assumption of no perfect collinearity. Write the t statistic for testing the null hypothesis
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