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A small country's aggregate production function is given by Y = K1/2. Its depreciation rate is 5% and its investment rate is 25%. What is its steady-state level of capital?
An economy has full-employment output, Yn, of 6000. Government purchases, G, are 1200. Consumption is C = 3600-2000r + 0.10Y and investment is I = 12-400r, Y is output and r is the real interest rate. Discover an equation relating national saving, S,..
The latest economic news was not very positive. Unemployment rates were higher than expected, consumer confidence had fallen, and companies were reporting layoffs were in order. The Federal Reserve chairman acknowledged the economy was in a recess..
The demand for labor is said to be a "derived" demand. What is the meaning of a derived demand? How does this concept help to determine the demand for labor?
Explain why the need to have both a high aggregate demand and a high profit rate for firms to be profitable are two requirements that may stand in contradiction to each other, which in turn may lead to problems in the accumulation of capital and ev..
suppose small country has 4 households and 3 businesses. each of the 4 households purchased 20000 in food and gasoline
What is the interpretation of β1, the estimated coefficient on cigs that you calculated with STATA - In a study relating college grade point average to time spent in various activities, you distribute a survey to several students. The students are..
Write an expression for the future value of the stock of external wealth in period N (WN). This should be written as a function of the economy's trade balance.
The variable re78 is earnings from 1978, measured in thousands of 1982 dollars. Find the averages of re78 for the sample of men receiving job training and the sample not receiving job training. Is the difference economically large?
The natural rate of employment depends on the stock of capital, which in turn obviously depends on investment expenditure. The natural rate also depends on technical progress, which is also likely to depend on levels of investment and research and..
Report the demographic and independent variables that are relevant to complete a demand analysis providing a rationale for the selection of the variables.
How is total risk measured? What is a portfolio? Why is the standard deviation of a portfolio less than the average standard deviation of the assets in the portfolio? What is systematic risk? What are the other names for it? What is unsystematic risk..
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