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Question: Per capita GDP in the long run: Suppose an economy begins in steady state. By what proportion does per capita GDP change in the long run in response to each of the following changes?
(a) The investment rate doubles.
(b) The depreciation rate falls by 10%.
(c) The productivity level rises by 10%.
(d) An earthquake destroys 75% of the capital stock.
(e) A more generous immigration policy leads the population to double.
Suppose that ut follows the ARCH process.
ention each account affected and the appropriate amount. Also, assuming your bank lends out money to the extent allowed by law, how much will the money supply grow beyond the initial $100,000 deposit?
Barriers to entry are important in the creation of monopolies because they keep competitors out of the industry. Although many types of barriers exist, historically, ownership of an essential resource, government patents and licenses, and large en..
Professional sports players are generally paid much more than farmers, factory workers, engineers, and teachers. The markets for the professional sports players, farmers, factory workers, engineers and teachers are generally competitive.
Equipment initial cost $ 500,000 Equipment salvage value $ 25,000 Annual gross income $ 300,000 year 1 Income gradient years 2 - 5 $ 25,000 Annual gross income $ 400,000 years 6 - 20 Annual operating expenses $ 160,000 first 10 years
Write an equation in slope intercept form for Econoland's PPF and an equation in slope intercept form for Free Enterprise's PPF. What is Econoland's opportunity cost of producing one additional airplane? What is Free Enterprise's opportunity cost of ..
Assume that the demand and supply functions for good X are as follows: What is the equilibrium price and equilibrium quantity?
The seller considers selling these objects through second-price auctions. In particular, he considers two kinds of sales. First, he may auction off these objects with three different second-price auctions, one for each object. Call this the "single-o..
explain why long distance phone service was originally a natural monopoly, how did the growing number of satellites change the cost structure of the long distance phone service, why might it be efficient to have competition in long distance phone ..
Do you think the MPC has risen or fallen since the recession of 2008-2009? Explain your reasoning
What is the contribution margin per unit for each chocolate bar produced given the fact pattern above? What is the Swiss Chocolate's U.S. division breakeven point in units and dollars given the fact pattern above?
Two months later, Mrs. Dodge split the workforce into two specialty groups, appointing Betty as the supervisor of one section and taking the other for herself. Betty's group consisted of three people: the two newest, whom she had trained, and one ..
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