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The amount of education the typical person receives varies substantially among countries. Suppose you were to compare a country with a highly educated labor force and a country with a less educated labor force. Assume that education affects only the level of the efficiency of labor. Also assume that the countries are otherwise the same: they have the same saving rate, the same depreciation rate, the same population growth rate, and the same rate of technological progress. Both countries are described by the Solow model and are in their steady states. What would you predict for the following variables?
a. The rate of growth of total income
b. The level of income per worker
c. The real rental price of capital
d. The real wage
Illustrate what is an investment schedule and how does it differ from an investment demand curve.
Business has fallen off greatly at your upscale restaurant because of the economic crisis. List four things you can do to win back the loyalty of your past costumers.
Describe how the Federal Reserve can affect the money supply and interest rates.
Despite the tremendous economic strides made during our current era of globalization, our world is split largely between those who have benefited greatly from globalization and those who have not (many of whom have actually been hurt by it).
Explain why a monopolist will never set a price (and produce the corresponding output) at which the demand is price-inelastic.
What is the major problem in achieving an efficient use of the world's water If there were a global market in water, like there is in oil, how do you think the market would work Would a free world market in water achieve an efficient use of the ..
Discuss the rationale for government regulation of firms with market power. Is regulation in the consumer’s interest or in the producer’s interest and how might this control special interest groups?
What kind of shocks could have caused this change to the money demand function? Determine the new interest rate and equilibrium level of output.
Show graphically what happens in the short-run and in the long-run. Be sure to label your graph correctly for full credit. Write the graph clearly and neatly. If you want to, describe what happens too.
The company currently has 95,000 subscribers and proposes to raise its monthly fees to $39.95 to cover add-on features such as text messaging, song downloads, game playing, and video watching. What is the new breakeven point if the variable cost incr..
Suppose velocity is constant, the growth rate of real GDP is 3% per year, and the growth rate of money is 5% per year. Calculate the long- run rate of inflation according to the quantity theory in each of the following cases:
Illustrate what does this tell you about the observability and accuracy of real interest rates compared to nominal interest rates.
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