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Let the real interest rate, ir, equal 5 percent and the rate of depreciation, d, equal 10 percent. In this case, if the price of a piece of capital is PK = $10,000, what is the rental price of capital, RK?
What is The law of comparative advantage The law of comparative advantage, though, suggests that it would be unwise of UK economy to try to replicate German model. First German
Explain about economic cycle The economic cycle is a period of approximately 6 or 7 years in which the economy completes a cycle of downturn, recovery, recession, and boom. A p
take one set ( lk& output) to prove
What is the size of the labor force if the unemployment rate is 6%, the population is 300 million, and the number unemployed is 6 million
A vital question is whether the equilibrium we have identified in labor market (with a high unemployment rate) can remain in long run. Will there not be adjustments which will take
A company can lease an asset for the next five years by making lease payments that are equivalent to annual payments of $3,000 at year 0, $6,000 at year 1, $7,000 at year 2, $7,000
Q. Explain the classical motivation? The classical motivation: Consumers want to smooth their consumption over time. In good times, consumers know that it is a temporary stat
what cause balance of payment curve to shift
what is phillips curve
Why and how does free trade help the U.S. economy? How might free trade hurt the U.S. economy?
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