Explain what happens to economic growth over time

Assignment Help Microeconomics
Reference no: EM131634291

Question: A decrease in the investment rate: Suppose a country enacts a tax policy that discourages investment, and the policy reduces the investment rate immediately and permanently from s to to Assuming the economy starts in its initial steady state, use the Solow model to explain what happens to the economy over time and in the long run. Draw a graph showing how output evolves over time (put Yt on the vertical axis with a ratio scale and time on the horizontal axis), and explain what happens to economic growth over time.

Reference no: EM131634291

Questions Cloud

What romans teaches regarding the natural world : In a 750-1000-word essay, describe what Romans 1-8 teaches regarding the natural world, human identity, human relationships, and culture.
Discuss how typical american family influences : Discuss how typical American family influences a child's perceptions and attitudes about learning and schooling
Percentage of adult spider : Find the z-scores that correspond to the percentage of adult spider that have carapace length of 15 mm and 16 mm
Explain two areas of the united states economy : Explain two areas of the United States economy that Ronald Reagan deregulated in the eighties. why you believe that these agencies came under Reagan's scrutiny.
Explain what happens to economic growth over time : A decrease in the investment rate: Suppose a country enacts a tax policy that discourages investment, and the policy reduces the investment rate immediately.
How much of the total budget does the company have left : How much of the total budget does the company have left to spend after the first three months? When are bar charts most commonly used
Why we researchers might get results : Class, can you come up with some reasons why we researchers might get results that are statistically nonsignificant?
Define personality disorders : disorders and pick a character from a popular television show or movie that you believe evinces that personality disorder
Why you believe people should allowed to vote using internet : explaining why you believe people should or should not be allowed to vote (either local or national elections) using internet.

Reviews

Write a Review

Microeconomics Questions & Answers

  What is big deal about having more or less consumer surplus

Calculate the change in consumer surplus due to the increased price of movies. What is the significance of this change in consumer surplus? In other words, what is the big deal about having more or less consumer surplus?

  Explain which theory of motivation would be most effective

What you know of the personality under examination, explain which theory or theories of motivation would be most effective for a manager to use when trying to help this individual achieve her or his full potential at work. Describe the process of det..

  Unemployment rate explained by frictional unemployment

Based on your understanding of frictional, cyclical, and structural unemployment, do you think that this high unemployment rate can be explained by frictional unemployment? Why or why not?

  Whether shortage or surplus

In a competitive market, the market demand is Qd = 400 - 5P and the market supply is Qs = 10P - 80. A price ceiling of $32 will result in a. a shortage of 80 units b. a shortage of 44 units

  Indicate how the banks balance sheet would be altered

ppose that the reserve requirement is 10 percent and the balance sheet of the People's National Bank looks like the accompanying example. A. What are the required reserves of People's National Bank Does thebank have anyexcess reserves B. What is th..

  Write a summary of the optimal solution

Assuming the processing plants can handle unlimited amounts of cranberries, for- mulate an LP model that minimizes total distribution costs for transporting cran- berries to the plants and cranberry juice to the cold storage facilities. Show eithe..

  What direction should government purchases be changed

What direction should government purchases be changed?

  Will firms in a price-taker market be able to earn profits

Will firms in a price-taker market be able to earn profits in the long run? Why or why not? What determines profitability? Discuss.

  Significance of Rostows take-off stage in economic growth

Describe the economic characteristics and significance of Rostow’s take-off stage in economic growth and discuss whether China has undergone that stage at any time. Show evidence?

  Exotic mortgages became popular in part

"Exotic" mortgages became popular in part because they allow someone of:

  Calculate the iterest rate that udwellum should pay

Suppose that the goverment of the city of Udellum, wich has a Baa credit ratng issues a bond with the same time to maturity in a market that is just as liquid as the market for corporate bonds. Suppose that investors have a federal tax rate of 30 ..

  Low-skill workers be helped by the minimum wage law

Presume that in an effort to help low-skill workers the government raises the permissible minimum wage to $15 per hour. Can you think of any unintended secondary effects that will result from this action? Will all low-skill workers be helped by the m..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd