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The economy of the United States is described by the following aggregate production function: Yt = minimum (Kt, Lt). Saving occurs at a constant rate s. Each period, capital depreciates at a constant rate δ. The population is constant. What is the evolution of output over time? What is the evolution of the capital stock over time?
Suppose that you are buying your first home. Current interest rates on a 30-year fixed-rate mortgage are 5 percent, since lenders expect an inflation rate of 2 percent over the next 30 years, thus ensuring them a real return of 3 percent. If actual i..
Which of the following statements concerning the long-run average cost curve of economic theory is (are) not true?
Firms A and B are the only firms in the market for widgets. Each firm can choose between cooperating and fighting. If both firms choose to cooperate, each gets a profit of 10. If both firms choose to fight, each gets a profit of 5. Suppose firms choo..
consider a country described by the one-country model in section suppose that the country temporarily raises its levels
Suppose instead that use of the Sonoma county buy local currency is completely voluntary. Who is the most likely to use this currency.
Illustrate what are the historical trends and current state of the federal budget and deficit spending. Should the federal budget be balanced? Is this really necessary.
An increase in the price of a product (P), along with an increase in the price of an input factor (PI), is certain to lead to an increase in quantity supplied (QS). Indicate whether you believe the statement is True or False, and then briefly explain..
sing specific data for an industry of your choice Elucidate how the benefits of such a policy.
Discuss the stability of the country's currency on the foreign exchange market. Has the value of the U.S. dollar impacted the selected countries' currency value?
q.in year 1 and year 2 there are two products produced in a given economy computers and bread. suppose that there are
You are told that the present worth of an increasing geometric gradient is $88,146. If the cash flow in year 1 is $25,000 and the gradient increase is 18% per year, what is the value of n? The interest rate is 10%per year.
q1. briefly summarize this loanable funds theory in your own words. identify at least one important entrepreneur that
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