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The Grossman Model
Many economists specializing in "growth theory" contend that developing countries may achieve strong economic growth by increasing the amount of capital and labor available for production, but that this type of growth strategy is incapable of support..
Suppose the economy starts with output at potential. Then the Minister of Finance raises taxes. But the central bank does not change its monetary policy.
There is a very strong positive correlation between income and maternal health in the US. Provide at least two potential explanations for this relationship.
The required return on the stock is 18 percent. Calculate the current expected price of the stock.
What did this sentence mean and what were its implications for development economics?
If I spent all my money ($450,000) on a new house I could buy a house with 4500 square feet. I settle for a 1500 square foot house. (Each square foot costs the same.) The day after I close the deal a nearby nuclear power plant is condemned and the va..
What are the foreign direct investment (FDI) requirements for the United States?
Midwest expects to begin using the warehouse again in 4 years. Another firm wants to lease the warehouse for 5 years with an option to renew.
Total factor productivity is the source of sustained growth in per capita GDP because there are limits to how much labor and capital can contribute.
"The observation of rising interest rates should always be interpreted as an indicator of economic decline while falling interest rates should always be interpreted as a an indicator of economic expansion." In preparing your comments bear in mind tha..
Assume that a product becomes more popular with consumers (a demand effect) and that input prices for the product increase (a supply effect).
Suppose the President and Congress choose to eliminate the output gap by using discretionary fiscal policy and focusing on transfer payments.
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