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Consider the discrete-time version of the neoclassical growth model. Suppose that the economy admits a representative household with log preferences (θ = 1 in terms of (8.49)) and the production function is Cobb-Douglas. Assume also that δ = 1, so that there is full depreciation. Characterize the steady-state equilibrium, and derive a difference equation that explicitly characterizes the behavior of capital stock away from the steady state.
A small company expects to produce 8,000 items in the upcoming year. The current material cost is $5.25 each. 14 minutes of direct labor are required per unit. Workers are paid $7.50 per hour. 2,133 direct labor hours are forecasted for the produc..
financial crises such as the recent lsquosub-prime credit crisis have significant disruptive effects on the flow of
This question refers to the estimated regressions in table 1 computed using data for 1988 from the United States Current Population opinion poll.
annual savings due to an energy efficiency projects have a most likely value of $30,000. the high estimate of $40,000 has a probability of .2, and the low estimate of $20,000 has a probability of .3. what is the expected value for the annual savin..
For each event, you must specify how it effects either demand, quantity demanded, supply, or quantity demanded. It is also important to demonstrate how the change will affect the market demand or supply curve.
A 10-year, 12%, $1000 bond that pays dividends quarterly can be purchased for $900. If the bond is purchased and pays as scheduled, calculate the nominal and the effective rate of return that the purchaser receives.
one of five risk-neutral bidders participating in an independent private values auction. Each bidder perceives that all other bidders' valuations for the item are evenly distributed between $50,000 and $80,000.
skilled technicians using equipment produced by two leading competitors in the medical equipment industry. Records for the current year show an average of 24 tests per hour performed on the A-1, and 51 tests per hour on a new machine, the Caltec.
You are buying a new car for $20,000. You signed a contract for the loan for 4 years. Your loan has an interest rate of 12% interest (APR). You make monthly payments and the interest is compounded monthly. What is the monthly interest rate
Argentina also has two distributors with values similar to those in Egypt, but both are run by the government. How does this affect the amount you could capture?
Notifying the recipients that second requests will be mailed if they fail to respond in a timely manner.
The services of a certified psychologist cost $110 per hour, and an extended health plan covers 50 percent of that cost. Under the plan, the clients covered used 625 hours of this service in a typical three-month period. To save money, the extende..
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