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Consider an economy with the following Cobb-Douglas production function (note that this production function does not contain natural capital). If the capital stock and real GDP grows at 3 percent per year, labor hours grow at 4 percent per year, and the quantity of human capital is constant, what is the average annual growth rate of technology (or total factor productivity)?
At fenway park, home of the boston red sox, seating is limited to 39,000. Hence, the number of tickets issued is fixed at that figure. (assume that all the seats are equally desirable and are sold at the same price.) seeing a golden oppurtunity to..
Suppose that natural real GDP is constant. For every 1 percent increase in the rate of inflation above its expected level, firms are willing to increase real GDP by 2 percent.
Using the simple Keynesian model to assess the implications for equilibrium GDP and the level of savings of an increase in the savings function. What eventually happens to the level of savings? What would happen to equilibrium income if there is a su..
The Corruption Perceptions Index (CPI) is a comparative assessment of a country's integrity performance, along with related academic research on corruption. Provide a description of this index and its ranking.
Throughout this course we have discussed the 'agency problem' - i.e., when the interests of owners and managers are not properly aligned.
Illustrate what is the tolal accounting cost. Illustrate what is the total economic cost. Elucidate why these are different in this way.
The Federal Reserve may buy government securities in open market operations in order to increase the money supply and encourage economic growth?
Suppose the market for ice cream cones is made up of three consumers:: Josh,Daisuke, and Tim. Use the information in the following table to construct the market demand curve for ice cream cones.
Suppose that you have following open economy where C = 10 + 0.8(Y-T); I = 10; G = 10; T = 10 and imports and exports are given through IM = 0.3Y and X = 0.3Y* respectively
Why might it be difficult for the Fed to formally adopt inflation targeting? Would inflation targeting be a good policy for the Fed in the present economic environment
Consider the following situation: a person sells fishes by the seashore, assuming that he is a monopolist, and that there is no cost of production of output. The inverse demand curve for his fishes s is given by: p( s ) = 10 -s. Plus, assume th..
Explain what are some of the factors that contribute to the wealth and poverty of different nations.
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