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Countries X and Y differ in population growth rates and rates of investment.Country X: investment (or savings) is 20% of GDP, population grows at 0% per yearCountry Y: investment (savings) is 5% of GDP, population grows at 4% per year.
Both countries have the same rate of depreciation (5%). Use the Solow model to calculate the ratio of their steady state levels of income per capita, assuming ? =1/3.
a) Verbally, interpret your answer.
b) How would your result change if ? =1/2?
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Examine the models of oligopoly and create at least one recommendation for improvement. Describe your rationale.
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Pham can work as many or as few hours as she wants at the college bookstore for $9 per hour. But due to her hectic schedule, she has just 15 hours per week that she can spend working at either the bookstore or at other potential jobs
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Assume that a very competitive start-up enters the market in direct competition with the oligopoly you described in the e-Activity, initially gaining a 12% market share.
Give two conditions that are important to the efficient market theory. List one implication of the efficient market theory.
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