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If the marginal product of capital net of depreciation equals 8 percent, the rate of growth of population equals 2 percent, and the rate of labour-augmenting technological progress equals 2 percent, what must happen to the saving rate to reach the Golden Rule level of the capital stock?
The # of people living on less than $1/day can be calculated using either market exchange rates or purchasing power exchange rates. Which will be larger? Why?
Paradox Dental, Limited., enjoys a local monopoly in provision of oral examination services in Tuskegee, Alabama. Total and marginal revenue relations for standard procedure are:
Suppose inflation rate in Philippines is 100% over one year, but the inflation rate in Japan is only 3%. According to relative PPP, what should happen during the year to the Japanese yen exchange rate against the Philippine peso?
Collect an article from an Australian newspaper that relates to the current Australian macro-economy or a macroeconomic issue or problem. In a paragraph indicate which section of the course it applies to, why you selected the article and provide a br..
Explore how a firm determines the optimal scale of a plant for a given rate of output and why this determination relates to longer run strategies versus current operations. Also, discuss the differences between economies of scale and economies of ..
An individual has to choose between investment A and investment B. The individual estimates that income and probability of the income from each investment are given in the following table (a) Using Excel's statistical tools, calculate the standard..
Assume a country has been running a significant expansionary fiscal policy for several years. Monetary policy has not been particularly expansionary.
What were some of causes of stagflation of 1973 and 1979? In what ways were these episodes of stagflation different from great depression of the 1930s?
Assume that the Bank of China wishes to peg the rate of exchange of its currency, the yuan, in terms of the US dollar. In each of the following situations, should it add or subtract from its dollar foreign exchange reserves? Why?
What do we mean when we say export are exogenous and import are endogeneos?
Plato, a Greek philosopher who lived from 427BC to 347BC, famously wrote that, "Necessity is the mother of inventions."you agree with this statement.
Assume that the market demand for broccoli is given by Q=1000-5P and the market supply of broccoli is given by Q=4P-80 where Q is quantity per year measured in hundreds of bushels an P is price in dollars per hundred bushels.
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