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Consider an economy with a production function given by Y_t = A*K_t + B*L_tSuppose that individuals save 20% of their disposable income, and that population size is fixed and equal to 1 million.
How would you derive the law of motion for this economy? (i.e. derive an expression for Y_t+1 as a function of Y_t)
How would the law of motion change if the government introduces a 30% tax on all sources of income (wages, capital payments, and profits), and the revenue is used every period to purchase non-durable public goods that have NO impact on total factor productivity?
Using macroeconomic data from the Bureau of Labor Statistics (or similar sources), identify the current state of the economy and the role of fiscal and monetary policy stimuli to manage the country's economy
Determine the inflation rate for the next 12 months, base their calculations solely on the current inflation rate and is it a closed or open economy? What budget des the government run?
The concept of present value gives equivalent in dollars available immediately to a payment that is made at some point in future.
in the free market, as does each unit of other goods. Down and Out are eligible to receive a public housing unit, which provides them with an apartment that would cost them $1000 per month in the free market at a rent of $500 per month. Draw their..
Explain the neo-classical theory of trade and show the difference between this and the classical approach, as wellas the similarities
You have been assigned to determine whether the economy is experiencing a credit crunch. What patterns in movements in the federal funds rate, the volume of bank lending, and the volume of short-term lending in financial markets will you look for
What price will the monopolist charge and how much output will he produce? Sketch a diagram of this market and show the equilibrium price and quantity. In addition, calculate the firm's profits.
What is the profit-maximizing price-output combination and what are the levels of the profits and consumer surplus at that point? What is Dead-weight-loss?
Discuss the comparative advantage(s) of your selected regional trading blocs. Identify the major risks associated with doing business in the selected trading blocs.
Find the optimal crude oil allocation in the preceding example if the profit associated with fiber were cut in half, that is, fell to $.375 per square foot.
Biro's patent prevented him from producing an exact copy so Reynolds reverse engineered the product, developing an alternative, arguably inferior design and introduced Reynolds ballpoint pens to the United States in October 1945 as the first ball ..
Explain the relationship between total, average, and marginal concepts and how these measures are important to optimization examine
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