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Suppose that the economy is initially in a steady state and that some of the nation’s capital stock is destroyed because of a natural disaster or a war.
(a) Determine the long-run effects of this on the quantity of capital per worker and on output per worker.
(b) In the short run, does aggregate output grow at a rate higher or lower than the growth rate of the labor force?
(c) After World War II, growth in real GDP in Germany and Japan was very high. How do your results in parts (a) and (b) shed light on this historical experience?
Assume a per-unit tax of $2.00 is levied on the producers of Gadgets. Illustrate what is the after-tax market equilibrium price and quantity.
Consider a local golf course that prices using a two-part tariff by charging a price for membership and then charging per round of golf played. Individual demand for rounds of golf is given along with the corresponding marginal revenue curve.
firm discriminates against females with a discrimination coefficient of 1.7. How many male workers will be hired?
Calculate the price elasticities of demand in each market and discuss these in relation to the prices to be charged in each market.
Using a three-circle Venn Diagram, check the following categorical arguments for validity. Some advertisers try to create a new ideal state for consumers. Some advertisers try to create dissatisfaction with the consumer’s current state. So, some who ..
If the price of one good is four time the price of the other also the price of both double, Illustrate what effect does it have on the set of affordable bundles
During the last year, the demand for books has been falling. At the same time, some industry observers expected that several smaller book manufacturers might exit the market due to the strong competition imposed by Kindle. Can you tell for certain wh..
You are considering buying a house and renting it to students. The yearly operating costs are $2,050. The house can be sold for $335,000 at the end of 10 years and it is considered 18% to be a suitable annual effective interest rate. If the house cos..
Suppose you were appointed economic advisor to a less-developed nation in Africa. The nation seeks to encourage capital formation and wants to increase the rate of savings of its own residents as well as encourage foreigners to invest in their nation..
How does the RBA control liquidity in the overnight money market? Explain the most frequent reason why the RBA uses open market operations in Australia.
q1. discuss the prognosis or economic outlook for the chilean economy in the coming year. consider the leading economic
Karen runs a print shop that makes posters for large companies. It is a very competitive business. The market price is currently $1 per poster. What is her AFC per poster (not per thousand!) if she prints 1,000 posters? What if she prints 2,000 poste..
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