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Modify the Solow Growth model by including government spending as follows. The government purchases G units of consumption goods in the current period, were G = gN and g is a positive constant. The government finances its purchases through lump-sum taxes on consumers,where T denotes total taxes, and the government budget is balanced every period, so that G = T. Consumers consume a constant fraction of disposable income - that is, C = (1 s) (Y T), where s is the savings rate, with 0 < s < 1.1. Derive equations for(a) The law of motion of capital per worker over time (i.e. the relationship between k0 and k).(b) The solution for steady state capital per worker k.
What is a fixed payment made by the privately insured patient in exchange for receiving the medical good or service? What is the percentage of each and every medical bill that the patient pays rather than the flat dollar amount?
The price of a wideget increases by 90%. what effect would we expect this to have on the equilibrium wage rate of workers who make widgets.
Describe significant current trends related to IT in a business setting and your personal life. What are the pros and cons to the increasing use of technology to disseminate information.
Discuss and explain the components of GDP in the output approach and in income approach, NDP, NI, PI, and DI.
A firm has cost function: C(y) = { y^2 + 1 if y > 0, {0 if y = 0, Let p be the price of output. 1) If p = 2, how much will the firm produce? If p = 1, how much will the firm produce? 2) What is the (optimal) profit function of the fir..
Describe the productivity change for every category also then determine the improvement for labor-hours, the typical standard for comparison.
Explain why is it that a firm in a perfectly competitive market can sell as much as it wants without a change in price occurring? As a result, what is the elasticity of demand affecting the firm then.
Think about a company that has been a state-owned, natural monopoly. If it is privatized, what kind of regulatory policies could the government follow, and what impact might they have on the firm.
Thomas Edison once complained that he was not making a profit selling light bulbs because his factories were operating 25 percent below capacity.
Elucidate the difference among structure and conduct compare these concepts under the two legal systems.
Demand and supply situtaions in the perfect competitive market for unskilled labor are as follows, Estimate the industry equilibrium price or output combination.
why might a parent company like McDonald s or Hilton choose to franchise its local outlets rather than own them and staff them with employees In many smaller cities all McDonald's outlets are owned by the same franchisee.
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