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Suppose the level of technology is constant. Then it jumps to a new, higher constant level.
a. How does this technological jump affect output per head, holding the capital-labor ratio constant?
b. Show the new steady-state equilibrium. What has happened to per capita saving and the capital-labor ratio? What happens to output per capita?
c. Chart the time path of the adjustment to the new steady state. Does the investment ratio rise during transition? If so, is this effect temporary?
Tanya operates a home business importing sweaters from Peru and sells them from her home. She collects $400,000 in revenue a year, and spends $200,000 on the sweaters and shipping costs, as well as $25,000 on advertising, accounting services and u..
A firm sells its product in a perfectly competitive market where other firms charge a price of $80 per unit.The firm's total costs are C ( Q) = 40 + 8Q +2Q2. a.How much output should the firm produce in the short run
An incumbent firm, Firm 1, faces a potential entrant, Firm 2, with a lower marginal cost. The market demand curve is p=120-q1-q2. Firm 1 has a constant marginal cost of $20, while Firm 2's is $10.
The table below illustrates values for consumption spending, saving, and planned investment in a closed, private economy. Aggregate Output Consumption Saving Planned Investment Planned Aggregate Unplanned Inventory Change Expenditure (GDP = Y) (C) ..
Calculate the predicted probabilities and verify that all the ?tted values are between 0 and 1. What is the smallest value you observe? And the largest?
Do you have any experience in the integration of existing code?
At its current short-run level of production, a firm's average variable costs equal $30, and its average fixed costs equal $70. Its total costs at its current production level equal $34,000. a. What is the firm's current output level
You are appointed secretary of the treasury of a recently independent country called Rugaria. The currency of Rugaria is the lav. The new nation began fiscal operations this year and the budget situation is that the government will spend 10 millio..
Tabulate or graph the results; Analyze and discuss the results, noting any interesting, tures
Product X is traded on the international market at a price p = 0.5. Consider a small open economy where there are two firms, A and B, producing product X. The two firms have a production function q^A = 10l^1/2k^1/2 and q^B = 10 min{l, k}
Suppose a consumer buys 10 units of good X and 20 units of good Y every year. The following table lists the prices of goods X and Y in the years 2005-2007. Assume that these two goods constitute the typical market basket.
Define optimistic, most likelys, and pestimistic scenarios buy using both optimistic, both most likely and both pestimistic estimates. Use a life of 4 years as the most likey value. What is the present worth for each scenario
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