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Assume that a "leader country" has real GDP per capita of $40,000, whereas a "follower country" has real GDP per capita of $20,000. Next suppose that the growth of real GDP per capita falls to zero percent in the leader country and rises to 2 percent in the follower country. If these rates continue for long periods of time, how many years will it take for the follower country to catch up to the living standard of the leader country?
If the reserve ratio is 15 percent and commercial bankers decide to hold additional excess reserves equal to 5 percent of any newly acquired checkable deposits, then the relevant monetary multiplier for the banking system will be:
Explain the most important economic, political or social issue facing the United States.
the table shows the demand schedule for two consumers of lemonade, Eli and Molly. Assume that these are the only two consumers in the market. Use the multi-point line tool to plot the market demand curve for lemonade.
Illustrate what are automatic stabilizers. What are some examples. What are your thoughts about the limits of fiscal policy.
Karen earns $75,000 in the current period and will earn $75,000 in the future. Assuming that these are the only two periods, and that banks in her country borrow and lend at an interest rate r = 0, draw her inter-temporal budget constraint.
The basic Idea as per the Solow model and its relationship with technological advance. What will add to capital stock and detract from it.
The Hull Petroleum Company and Inverted V are retail gasoline franchises that compete in a local market to sell gasoline to consumers.
Illustrate what the pricing and non pricing strategies that firms rely on to compete in monopolistic competition and oligopoly market models.
The government did nothing to stem the decline. From the point of view of economic policy, elucidate what would you think was the reason.
Measured as the long-term growth of potential GDP, how has economic growth in the United States changed over the decades since 1962? There was a slowdown in growth-when was it and what is it called?What is the difference between real GDP and nominal ..
Explain how relevant to the real world do you believe this result is in the "contestable markets" view of the competitive process.
Elucidate what are the best goals for the Fed. Should it lean toward restraint or toward expansion.
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