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Q. This problem uses the Solow model to analyze the e?ects of immigration. Suppose that the economy is initiallyin steady state.1. Suppose that there is a one-time increasein labor force from immigration, but n (the population growth rate) remains constant. Analyze the short-run and long-run effects of this change for the levels of per-capita output, and the growth rates of (total) output and per-capita output.
2. Suppose that immigration is a continuing process so that n increases to a higher value n>n ˜ . Analyze the short-run and long-run e?ects of this change for the levels of per-capita output, and the growth rates of (total) output and per-capita output. Consider the Solow model. Suppose an economy begins in steady state and is characterized by the following parameter values: s = 0.2, d = 0.1, z = 1, N = 100, n = 0 and with the production function Y = zK^1/3N^2/3 Calculate the growth rate of per capita GDPin period immediately following each of the changes listed below:1. The investment rate doubles.2. The productivity level rises by 10%3. An earthquake destroys 75% of the capital stock
Which of the government policies below is not likely to encourage per capita economic growth.
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Suppose that these cost figures accurately refl ect the economic costs of providing inpatient services at these two hospitals and that the two hospitals face the same average total cost curve.
Suppose it had begun an expansionary policy early in 1981. What does the text's analysis of the inflation unemployment cycle suggest about how the macroeconomic history of the 1980s might have been changed.
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Select the most serious disadvantage of globalization (in your opinion) and make at least one recommendation
You will need to determine how you will measure strict gun control laws for the states and to define what types of crimes will make up the crime rate.
A business cycle fact is that real wages are pro-cyclical. Using the classical labour market as we have all semester, show and explain how the classical economists explained this business cycle fact.
What are the factors that affect pay differentials? How does each factor increase or decrease relative wages?
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