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