Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Consider the model in Section 18.4.2. Suppose that the world consists of two countries with constant and equal populations, and constant savings rates, s1 > s2. Suppose that the production function in each country is given by (18.15), with k' corresponding to the highest capital-labor ratio in any country experienced until then. There is no technological progress, and both countries start with the same capital-labor ratio.
(a) Characterize the steady-state world equilibrium (i.e., the steady-state capital-labor ratios in both countries).
(b) Characterize the output per capita dynamics in the two economies. How does an increase in γ affect these dynamics?
(c) Show that the implied income per capita differences (in steady state) between the two countries are increasing in γ. Interpret this result.
(d) Do you think this model provides a plausible mechanism for generating large income differences across countries? Substantiate your answer with theoretical or empirical arguments.
How would your answer to part (b) change if Robinson adjusts his production to take advantage of the world prices?
There are two workers in the economy, "A" and "B"; "A" can go to school and "B" cannot. Education increases future income according to the following function: I(e)= 50(e)/(1+e) Total cost per year of schooling equals 2, and thus: mc(e)=2.
A perpetuity pays $200 per year. The issuer promises to increase payment by 1 percent per year. The current interest rate is 5 percent. What is the price of this perpetuity
assume that the combined consumer goods + capital goods values for points a, b, and c are $20 billion, $40 billion, and $38 billion respectively. If the economy moves from point a to point b over a 14-year period.
Perform a macroeconomic analysis of the currency against US dollar over 5 year period ending in 2010.
Explain how Ben's expenditure on flowers and water illustrates the paradox of value.
1. aggregate output is produced with population of workers grows according to capital stock evolves according to and
Will revenues increase or decrease in the short and long runs?
Calculate the slope of the AE curve and the size of the multiplier if MPS = 0.20. Then, calculate the revised slope of the AE curve and the multiplier when you know that the imports and the marginal tax rate will reduce the slope of the AE curve b..
Assuming the worker faces no other taxes, graph the budget constraint for a typical worker earning a wage of W per hour
What do think would happen to competition in the industry where you work if, say, a certain number of firms would close down? What would happen to their price-making ability?
The bank pays a. 10%, b. 11.25%, per year, compounded annually, on such deposits. What is the maximum fixed amount Mr. Jones can withdraw at the end of each year and still have the funds last for 15 years? Ans: a.$9,203.16; b. 9,869.27
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd