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( Optional ) For this question use the Cobb-Douglas production function and the corresponding desired capital stock given by K * g ( rc , Y ) ?Y rc . Assume that ? .3, Y $5 trillion, and rc .12.
a. Calculate the desired capital stock, K *.
b. Now suppose that Y is expected to rise to $6 trillion. What is the corresponding desired capital stock?
c. Suppose that the capital stock was at the desired level before the change in income was expected. Suppose further that .4 in the gradual adjustment model of investment. What will the rate of investment be in the first year after expected income changes? In the second year?
d. Does your answer in ( c ) refer to gross or net investment?
If you were the owner of an automobile company and decided to market internationally, would you face imperfect, monopolistic, oligopolistic, or perfect competition? Please justify your answer.
What insights does this exercise provide about why firms are more likely to interview and hire applicants with white-sounding names?
Why might this legislation increase aggregate surplus? Why might it lower it?
In particular, you love vanilla ice cream, and you love chocolate ice cream, but you love vanilla just a little bit more. Your ice cream utility function is given by U(V,C)=1.5V+C. Assume vanilla ice cream costs $2/gallon.
How do shareholders view us? (For public universities, the shareholders are the taxpayers who invest their taxes into the university. For private universities, the shareholders are the people or organizations that endow the university.)
concepts interpret the regression equation that you calculated in the prior section. what is the meaning of y
a. Use a T-Account to show the impact of this transaction on the FNB's balance sheet. The funds a bank has on deposit at the Fed count as part of its reserves. b. Assume that before receiving the discount loan, FNB has no excess reserves.
Now suppose the training involves learning the specic policies of the company and more about their specic clothing lines. In this case, which party would benet from the training? Would it be implemented? And what would worker pay be during each pe..
The forecasting staff for the Prizer Corporation has developed a model to predict sales of its air-cushioned ride snowmobiles. The model specifies that the S vary jointly with disposable personal income Y and the population between ages 15 and 40,..
How many domestic workers will be hired?
What is each country's cost ratio of producing Peaches and Apples?
Assume that before specialization and trade, Latalia produced combination B and Trombonia produced combination C. Assume these two nations now specialize completely based on comparative advantage.
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