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Two economies, A and B, start out with real GDP equal to $1,000. If country A grows at a rate of 5% while country B grows at a rate of 10%, calculate the following:
a) Country A's level of real GDP after 3 years.
b) Country B's level of real GDP after 3 years.
c) The difference in the two countries GDP after 3 years.
As an economy increase and productivity grow, real wages tend to rise - people get richer on aggregate. Real wage growth implies that people are able to buy more of the services that are in basket of goods.
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To hire workers, suppose that Mitsubishi must pay the competitive hourly wage of ¥1,470. In the study of its production process and markets where capital is procured, suppose that Mitsubishi determines that its marginal productivity of capital is ..
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What is the arc elasticity of demand for the London Times and what happened to income as a result of the decline in the price?
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