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Suppose that the economy has the following production function:
Y = AKαL 1-α
where Y is the aggregate output; A is total factor productivity; K is capital; and L is labour.
The investment function is: (n+δ)k β , where β < 1 Let α = 0.4. An economist suggests that the optimal savings rate must equal the capital share of income.
Do you agree with this? Why or why not?
Assume that a company has a budget of $12,000, that the wage rate is $10 per hour, and that the rental rate of capital is $ 100 per hour.
There is an Arithmetic Gradient Income from years 6-10 with a Base Annuity of $500.00 and an Annual Gradient G of +$50.00
Consider the market for economictextbooks. Explain whether the following events would causean increase or a decrease in the supply or an increase or adecrease in the quantity supplied. The market price of paper increases.
Topic: Analysis and evaluation of Macroeconomic performance of Australia and USA. Obtain data on key macroeconomic indicators: real GDP, interest rates, unemployment rate, CPI, exchange rate, exports and imports
Do alternative currencies have real world worth? What are the pros and cons of the expanding popularity and acceptance of these forms of money?
If the required reserve ratio is 10 percent, calculate the potential change in demand deposits under the following circumstances: a. You take $5,000 from under your mattress and deposit it in your bank. b. You withdraw $50 from the bank and leave i..
1. Suppose a monopolist faces demand Q=100-P. The marginal cost of production is 20. a. Calculate the price P the monopolist will set, the corresponding Q, and the monopolist's profits.
Define unemployment. Should everyone who does not hold a job be considered "unemployed" To help with your answer, draw a supply and demand diagram depicting the labor market. What is measured along the demand curve
assume the country is in a budget deficit and carrying a very large debt. discuss the dangers of a high debt to gdp
Illustrtae the difference among concretionary and expansionary fiscal policy.
Imagine that it specializes in the production of computer hardware, and that its corporate culture involved the use of an aggressive valuation/accounting procedure (computer simulation) to report financial transactions in its income statement.
Wall Street responded by increasing SkyWest's market valuation from $143 million to $1.1 billion after the arrangement was made. Explain, in economic terms, how this arrangement with Delta and United could have caused the value of SkyWest to incre..
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