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The economies of two countries, Thrifty and Profligate, have the same production functions and depreciation rates. There is no population growth or technological progress in either country. The economies of each country can be described by the Solow growth model. The saving rate in Thrifty is 0.3. The saving rate in Profligate is 0.05.
a. In which country is the level of steady-state output per worker larger? Explain.
b. In which country is the steady-state growth rate of output per worker larger?
c. In which country is the growth rate of steady-state total output greater?
Assume the market demand and supply functions are QD=430-5P and QS= 2P + 318. You have just graduated and moved to this city;
What price and quantity will the monopolist produce at if marginal cost is a constant$4 ? Compute the dead weight loss from having the monopolist produce, rather than the perfect competitor
In response to accounting scandals in 2002, the federal government passed legislation requiring that corporate directors have a certain level of expertise with financial information and mandating that chief executive officers personally certify
Pawel spends half of the year working in Britain where he consumes British food q and half of the year in Poland where he consumes Polish food Q.
For an unknown reason, aliens kidnapped all immigrants residing in the US. One morning America wakes up and finds that the only people left in the country are American citizens, while all legal and illegal immigrants are gone.
what are the implications for economic growth and development for these nations.
Suppose the market for widgets can be described by the following equations: What is the equilibrium price and quantity?
Create a presentation for the Board which examines the current state of the U.S. economy. Use the Library to find out the up-to-date information needed.
the Candiate of your side of the group to research and present a cohesive argument to the other side.
What kind of shocks could have caused this change to the money demand function? Determine the new interest rate and equilibrium level of output.
During the recent recession, when countries around the world suffered high unemployment rates and the governments were experiencing huge budget deficits, economists debated whether to raise or cut taxes or to raise or cut government spending.
An economy can be stimulated by printing more money. Illustrate what are the dangers of doing that. Inflation can be decreased by reducing the money supply.
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