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Suppose the economy is on a balanced growth path in the Romer model, and then, in the year 2030, research productivity rises permanently to z? > z.
a) Solve for the new growth rate of knowledge and yt
b) Make a graph of yt over time (on a ratio scale).
c) Why might the parameter z increase in an economy?
Suppose you earn $1 million over your working life and the real interest rate for retirement saving is 50%. How much will you save and how much will you consume in each part of your life?
1 determine a new variable - inflation defined as the annual percentage increase in consumer prices.2 give a graphical
A) Calculate the country's steady state level of output per worker. B) Now suppose k is equal to 400. Is the country at its steady-state level of output per worker, above the steady-state or below the steady state
Supposed that higher income implies higher imports and thus lower net exports. That is the NX = NX (e). what are the effects in a small open economy of fiscal expansion on income and the trade balance under floating and fixed exchange rates
If it will cost us approximately $0.75/bottle to supply more Coke to our consumer what should we do if our goal is to maximize profit.
After graduating from HS, Ron plans to go to college. The college tuition is 15,000 a yr. But instead of going to college Ron can take a full time job that pays 20,000. If Ron decides to go to college, what is his opportunity cost for attending colle..
In the New Orleans metropolitan area in August 2005, the labor force was 634,512 and 35,222 people were unemployed. In September 2005 following Hurricane Katrina
Suppose that, other things remaining unchanged, the price of X falls to $1. What quantities of X and Y will you now purchase.
You are the manager of a firm in a new industry. You have gotten the jump on the only other producer in the market.
a. describe a situation where prices have been held out of equilibrium due to government intervention in the market-the
microeconomic problemmary produces both hats as well as apple piesif mary uses all her resources to produce hats she
M.C. Hammer is selling off part of his very large wardrobe of puffy pants. The market price of each pair of pants depends on both the number of sequins on the pants and their age. Let this price be, in dollars, 20+.01S+2A, where S is the number of..
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