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An economy has the following parameter values: s ?=.3,d ?=.1,A ?=1,andL ?=100.2 The economy begins at steady state but at some point is attacked by Godzilla, destroying 70% of the capital stock. Calculate the growth of per-capita GDP in the period immediately following the Godzilla attack.
1 The Drop box will not close but your score will be reduced by the amount described in the syllabus depending on how late it is uploaded.
2 Note that the presence of savings and depreciation rates mean that this problem involves the Solow model.
Raising chickens requires several types of feed, such as corn and soy meal. Consider a farm in the former Soviet Union. Try to describe how decisions on the number of chickens to b
Trade barriers come in a lot of forms. Quota is one. This is when a country sets a limit to the imported products. This is completed for a number of reasons. One is due to the gove
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Describe dynamic multiplier
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what are the qualitative methods of controling credit
. (40 points) Consider two consumers, A and B. A and B both want perfect consumption smoothing (c = cf) and both have no current wealth. However, the two consumers have different i
Suppose the Bank of Canada announces that it will raise the money supply in the future but does not change the money supply today. Using the Fisher equation, explain what happens t
what is real and norminal interest rates?
how to calculate consumption from saving and tax
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