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Consider the model analyzed in Section 13.4.
(a) Show that the allocation described in Proposition 13.6 always involves finite utility and satisfies the transversely condition.
(b) Show that in this model there are no transitional dynamics.
(c) Characterize the Pareto optimal allocation, and show that the equilibrium growth rate in Proposition 13.6 is less than the growth rate in the Pareto optimal allocation.
Fin the this combination using the information below and given that the prices of labor and capita are $1 and $3 pert unit repectively. Q= 0 1 2 3 4 5 6 7 8 TPI=0 11 20 28 35 41 45 46 46.5
Investigate the history of slavery and discuss the ways in which this history impacts contemporary society
Suppose that the Fed is required to keep the inflation rate between 1 percent and 2 percent a year but with no requirement to keep trend inflation at the midpoint of this range The Fed achieves its target. a. If initially the price level is 100
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aisha and robin consume only food and clothing. figure 1 below depicts the consumption possibilities for these two
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Your current wealth level is M=49, and you are forced to make the following wager: if a fair coin comes up heads, you get 15; you lose 24 if it comes up tails. Your utility function is U(X)=sqrt(X). What is the most you would pay to get out of the ..
When wekend prices skyrocket, some weekend golfers choose to play during the week instead. The greater difference between the weekday and the weekend prices, thegreater are the number of "defectors." How might this factor affect the operator's pri..
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Policymaking is much easier when the stae of the economy is easily observable than when there is uncertainty about how the economy is doing, as this problem illustrates. Suppose that the economy is either in an expansion or a recession.
What are some other characteristics of this market structure
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