User Account

All Pages

What fractions of income do capital and labor receive

Assignment Help Macroeconomics
Reference no: EM132479018

Cobb Douglas Production Function Suppose that an economy's production function is Cobb Douglas with parameter x = 0.3 . Here we have Y=A* K^ alpha * L^ 1- alpha.

a. What fractions of income do capital and labor receive?

b. Suppose that immigration increases the labor force by 15 percent. What happens to total output (in percent)? The rental price of capital? The real wage?

c. Suppose that a gift of capital from abroad raises the capital stock by 10 percent. What happens to total output (in percent)? The rental price of capital? The real wage?

d. Suppose that a technological advance raises the value of the parameter A by 10 percent . What happens to total output ( in percent)? The rental price of capital? The real wage?

Reference no: EM132479018

Questions Cloud

Easy-to-grow strain of wheat increases farm harvests : Consider whether each of the following events is likely to increase or decrease real GDP. In each case, do you think the well-being of the average person
Find contribution margin ratio and unit contribution margin : Variable costs are $7 per unit, and fixed costs are $39,300. Find the contribution margin ratio and the unit contribution margin
What was effect of the repurchases on the per-share price : There were 1,957 million shares outstanding prior to the repurchase. What was the effect of the repurchases on the per-share price of Dell's stock?
Determining the marginal propensity to consume : If the marginal propensity to consume is 0.6, what happens to the following? Do they rise or fall? By what amounts?
What fractions of income do capital and labor receive : Cobb Douglas Production Function Suppose that an economy's production function is Cobb Douglas with parameter x = 0.3 . Here we have Y=A* K^ alpha * L^ 1- alpha
Calculate total fixed costs : In the month of the lowest production the company made 1,170 desks at a cost of $59,300. Using high-low Method of cost estimation, calculate total fixed costs
What would be the net operating income : If the selling price increases by $2 per unit and the sales volume decreases by 100 units, what would be the net operating income?
How big is the inflationary gap : Assume that the economy is in equilibrium at $5,700, and full employment is $4,800. If the MPC is 0.67, how big is the inflationary gap?
Income-expenditure equilibrium : How will each of the following affect planned investment and unplanned inventory investment.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd