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Suppose that the economy is initially in a steady state and that some of the nation’s capital stock is destroyed because of a natural disaster or a war.
(a) Determine the long-run effects of this on the quantity of capital per worker and on output per worker.
(b) In the short run, does aggregate output grow at a rate higher or lower than the growth rate of the labor force?
(c) After World War II, growth in real GDP in Germany and Japan was very high. How do your results in parts (a) and (b) shed light on this historical experience?
Describe how, if at all, each of the following developments affects the AD and/or IA curves: Suppose that there is a technological disaster that makes workers less productive than before. Assume that initially output is at its natural rate. Suppose ..
A multi concept restaurant incorporates two or more restaurants, typically chains, under one roof. What do these numbers imply for decision of when to open a shared facility versus two separate facilities.
How popular notion of business profit is is different from the economic profit concept? What role does the idea of normal profit play in this difference? "In the long run, profit maximizing firm will never knowingly market unsafe products. However, i..
q1. visualize you are a manager for good or service used. from results of the deterioration equation recommend
If Romaine lettuce and Iceberg lettuce are substitute products, an increase in the price of Romaine lettuce will ______ the demand for Iceberg lettuce. A. shift inward B. shift outward C. either increase or decrease (depending on whether lettuce is a..
q1. if the demand curve is qp 20-2p and the marginal cost is constant at 8 what is the profit maximizing monopoly
Supply and Demand in the Cell Phone Market. As wages increase for Apple Workers, what happens to the price and quantity of iphones? As the price of drone phones decrease, what happens to the price and quantity of iphones? If the government taxes cell..
A country's trade balance. A. is greater than zero only if exports are greater than imports. B. must be zero. C. is greater than zero only if imports are greater than exports. D. must be greater than zero.
As we observed in this chapter, central banks, rather than purposefully setting the level of the money supply, usually set a target level for a short-term interest rate by standing ready to lend or borrow whatever money people wish to hold at that in..
Illustrate which of the following tax systems could NOT be structured to satisfy conditions of vertical equity.
B would cost $1.5 and save $$400K pa. C would cost $2.1M and save $500K pa. For each of the alternatives. Construct a Choice Table based on the chosen MARR.
Use the open economy IS-LM model supplemented by the uncovered interest parity condition. If a nation with flexible exchange rates wanted to expand real GDP while avoiding a trade deficit, should it rely on fiscal policy or monetary policy? Illustrat..
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