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Suppose the parameters of the Romer model (the no-capital version) take the following values: A¯ 0 = 100, ¯` = 0.10. ¯z = 1/500, and L¯ = 100.
(a) What is the growth rate of output per person in this economy?
(b) What is the initial level of output per person?
(c) What is the level of output per person after 100 years?
(d) Consider the following changes, one at a time: a doubling of the initial stock of knowledge, a doubling of the research worker proportion, a doubling of research productivity, and a doubling of the population. In each case, how would your answers to parts (a), (b), and (c) change? (e) If you could advocate one of the changes considered in part (d), which would you choose? Briefly state why you would choose this change.
Demonstrate graphically the cost of income taxation of 30% to consumers and producers for an income of $27,908 and how does the taxation change if the income was $220,874?
Consider the following strategic setting involving a cat named Baker, a mouse named Cheezy, and a dog named Spike. Baker’s objective is to catch Cheezy while avoiding Spike; After Spike moves, the game ends. In this game, how many information sets ar..
The Effectiveness of Pay for Performance Plans Note: paper must be a minimum of 3 full double-spaced pages and a maximum of 5 pages. You may use your textbook as a source, but you must have a minimum of 3 non-text sources as well. Please document you..
Padayappa has now retired after 40 years of employment. He just made an annual deposit to his investment portfolio and realized he has $2,400,000. If he could buy a TV 40 years ago for $600, what would a comparable one cost today if the consumer ele..
What is the relationship between a perfectly competitive firm's MRP curve for an input and that firm's demand curve for that input?
A medical device company has a monopoly on a certain class of cardiac implants. Demand for the implants is given by P=28000-5Q and marginal revenue is given by MR=28000-10Q. The total fixed costs for the implants division is 50000 and the marginal co..
What are the social and global economic impacts on health care in the present day relating to budgetary cuts from the various levels of government (local, state, and federal)?
Explain in detail the problem the country is facing. Government could address the problem with either increasing government spending, cutting taxes, or both. If the government decided to increase spending to address the problem, by how much should sp..
Explain the effects of a tariff and a quota placed on imported automobiles on a domestic market. Who is hurt with a tariff or a quota and why? Who benefits and why?
In 900 words or more needs to be general in nature and should reflect your beliefs, and not necessarily a statement of fact. Are your values based on family, health, achievements, wealth, job success, happiness, faith, love, or anything else that you..
The present value of a dollar rises as
A linear demand curve:
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