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Assume a Solow growth model economy with no exogenous technological change is initially at a steady state. Suppose there is a permanent decrease in the population growth rate, say on account of the spread of AIDS – a major current problem in Sub-Sahara Africa. Show graphically the path of the economy’s capital and output per capita over time following this event.
Connecticut recently reported that it expects its pension funds to earn 8% or more per year. This is highly optimistic. What behaviors might their pension fund managers engage in in order to get these returns?
You are given the following information for Sookie’s Cookies Co.: sales = $51,000; costs = $39,800; addition to retained earnings = $2,300; dividends paid = $925; interest expense = $1,580; tax rate = 40 percent. Calculate the depreciation expense.
Indentify one group that would benefit from deflation and that would lose. explain why each group would gain or lose from deflation.
wyandotte chemical company sells a variety of chemicals to the automobile company. wyandotte currently sells 30000
Frank is a single-father with one child. The cost of child-care is equivalent to $150 per day. When Frank works, he receives an hourly wage of $20. In addition he has $150 of non-labor income per day. He sleeps 8 hours a day. Given these constraints,..
In your own words, outline several aspects of the system of checks and balances. What are some responsibilities that are unique to each branch, and where do responsibilities overlap? What was the intention behind this setup?
Can you say anything about how the price charged in each market relates to the relative price elasticities of demand you calculated in part d? Try to explain intuitively using an example of a real product that you might consume, in which the supplier..
It is relatively clear why price discrimination may be good for firms. But what about consumers? Do you think consumers benefit or are hurt when the firm is able to charge a different price to different customers?
Derive graphically the long run supply curve for an increasing cost industry. Provide some explanation with your graph.
Consider a problem such as Costumed Characters in Times Square harassing tourists for money. Give examples of a SMORC policy, a Behavioural policy and a CMORC policy (either version) to deter this problematic behaviour. What distinguishes each policy..
One important difference between an entrepreneurs also a manager is which the former gets into a market before demand increases, while the later gets into the market after the shift.
Intermediate good is a good. produced in a previous year the GDP does not include intermediate goods even if they are sold during the current year. produced in a previous year the GDP includes intermediate goods only if they are sold during the curre..
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