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Q. Consider a Solow growth model with Cobb-Douglas construction, depreciation rate δ, savings rates, population growth rate n, also rate of technological progress equal to g. You can use your answers from Question 2 to answer the following questions.
(a) Consider the following empirical observations for the U.S.: Capital stock is 2.5 times GDP Population growth is roughly 2% Depreciation accounts for 10% of GDP grows at a rate of 3% Owners capital share of output is roughly 30% is the US currently at the golden rule level of capital, based on these data?
(b) Based on these data, Illustrate what is the golden rule level of capital?
(c) Assume the U.S. government implements a policy that achieves the savings rate needed to achieve the golden rule level of capital. Using desire response illustrate how the following variables would change as the U.S. transitions to its new balanced growth path: capital, output, also consumption.
Based on your answers in a also b, how can you reconcile the president's statement with economics. Can you suggest how his statement could be modified to be consistent with the IS-LM model.
Elucidate how it is possible that we have "sustainable development" (as it is defined in text book) in a world in which minerals, oil and or non-renewable resources are being depleted.
q.a major producer of consumer goods set out to forecast the price of fresh salmon three years ahead. such a forecast
Was she calls her company's distribution manager and requests a special delivery for her customer. Jenny is providing the important marketing function of.
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What is wrong with claiming that changes in the distribution of income are associated with trade instead of the technological changes that the article discusses.
q1. suppose that the first week of summer jenny charged 25 cents for an 8-ounce cup of lemonade her next-door neighbor
Use a .01 level of significance to test if there is a difference in the mean production of the three assembly lines. Develop a 99% confidence interval for the difference in the means between Line B and Line C.
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q. answer the following question using the keynesian model of a closed economy. suppose the federal government would
As Bavarian Crystal Works is only one for many crystal producers in the world market, it can wholesale as many of the decanters as it wishes for $50 apiece.
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