What is the plague immediate impact on total output

Reference no: EM131774168

Question: Suppose a plague causes a one-time reduction in an economy's labor force; immediately afterward the economy returns to its pre-plague labor-force growth rate. Suppose further that the economy was on its balanced-growth path before the plague, the saving rate never changes, and there is never technological progress.

a. What is the plague's immediate impact on total output and output per worker?

b. Is the growth rate of output after the plague and before the economy achieves balanced growth smaller or greater than its balanced-growth-path rate?

Reference no: EM131774168

Questions Cloud

The decision making with the agile project methodology : What is the benefit of including all team members in the decision making with the agile project methodology?

Powerpoint presentation project on electrical alarm : Prepare PowerPoint presentation project on Electrical Alarm - purpose of the study - significance of the study

Account in the month of the sale : Big wheel inc collection 25% of it sales on account in the month of the sale and 75% in the month following the sale.

Determine the direct labor budget for 2012 : Each set requires 2.5 hours to polish the material. If polishing labor costs $15 per hour determine the direct labor budget for 2012.

What is the plague immediate impact on total output : Suppose a plague causes a one-time reduction in an economy's labor force; immediately afterward the economy returns to its pre-plague labor-force growth rate.

Budgeted cash receipts from sales on account : Flanders industries collection 35% of it sales on account in the month of the sale and 65% in the month following the sale.

How much will our total costs change : How much will our total costs change when we product 10 additional units(assume that we are still in the relevant range)?

Show the price level and quantity of real gdp : Suppose the price level in a particular economy equals 1.3 and that the quantity of real GDP demanded at that price level is $1,200.

What will be their total cost of ordering and carrying nails : What will be their total cost of ordering and carrying the nails? Calculate the percentage of time that you expect to run out of dehydrated water.

User Account

All Pages