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Generalize the analysis of the continuous-time perpetual youth model of Section 9.8 to an economy with labor-augmenting technological progress at the rate g. Prove that the steady-state equilibrium is unique and globally (saddle-path) stable. What is the impact of a higher rate of technological progress?
A $10,000 mortgage bond with a bond interest rate Of 8% per year, payable quarterly, was purchased for $9200. The bond was kept until it was due, a total of 7 years. What rate of return was made by the purchaser per 3 months and per year.
At what salary would it make sense for this firm to hire an incompetent manager?
Compute the profit-maximizing price and output combination.
why is the effect on equilibrium output finite? and How do I know that the multiplier is 1/MPS?
consider the following production function: q= 8lk+ 4l^2-(1/3)^3, Given the following expression for the marginal productivity of each input: MPl= 8K+8L -L^2 and MPk -8L Assuming capital is plotting in vertical axis and labor is plotting in horizont..
Quagmire Corporation wants to set up a manufacturing plant to last for 20 years. Initial costs at year 0 are $18,000 for the building and $31,000 for the equipment. At year 10 there will be a major machinery overhaul
If the Central Bank in uenced the nominal rate in such a way as to make the Quantity Theory of Money hold true (to your answer in the previous section), then what level of i (as a percentage) would they target
Howard Bowen is a large-scale cotton farmer. The land and machinery that he owns has a current market value of $4 million. Bowen owes his local bank $3 million. Last year Bowen sold $5 million worth of cotton. His variable operating costs were $4...
A particular segment of the medical device industry is dominated by a handful of firms. These firms have combined into an effective cartel. All firms in the cartel have the same cost structure with zero fixed costs and each has constant marginal c..
Now calculate the same elasticities at P = $12.
If you have a times series data set with 100 years worth of data that you use to estimate a distributed lag model of order 3, how many degrees of freedom will you have for hypothesis testing on estimated coefficients
Illustrate with example of demand for households refrigerator or television set.
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