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A country is described by the Solow Model with a production function y =k1/2 where y is output per worker and k is capital per worker. Now suppose that the fraction of output invested (or saved) is 50%. Assume that the depreciation rate is 5% and population growth is 0%.
A) Calculate the country's steady state level of output per worker.
B) Now suppose k is equal to 400. Is the country at its steady-state level of output per worker, above the steady-state or below the steady state?
In a two play, one shot simultaneous move game every player can select strategy A, each earns a payoff of $500. If both players choose strategy A,
Suppose that the domestic demand and supply for hats in a small open economy are given by-Where Q denotes quantity and P denotes price.
Find out the average total cost and average variable cost as a function of the level of output. Assuming the firm has the same cost curves in the long-run for q>0 and C (0) =0, how much will it produce in the long-run?
Provide two terms which you have heard in the mass media, political arena, or in any other venue.
During August 2009. 80 people lost their Jobs and didn't look for f new ones, 20 people quit their jobs and retired, 150 unemployed people were hired, 50 people quit the labor force,and 40 people entered the labor force to look for work. Calculate..
Do analysis of the economic and ethical implications of the article event.
After natural disasters, such as hurricanes, some commentators point to 'bright-side'. It is, for example, often pointed out that natural disasters reason GDP for a region to spike upward during the post disaster cleanup.
Elucidate how these economic concepts can be used to address IBM's problems and opportunities. Identify which economic and political policies affect your IBM and explain how they impact business decisions.
How would each of the following affect the firm's marginal, average, and average variable cost curves?
Analyse both the conventional and unconventional tools used by central banks and type of unemployment is responsible for this reduction in the unemployment rate? Explain your answer.
Draw the indifference curves map corresponding to welfare function (1) with the rate of unemployment on the horizontal axis and the inflation rate on the vertical axis.
Eluidate the difference among comparative advantage and absolute advantage.
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