Classical Growth theory predicts that O aggregate income always returns to the subsistence income O log run population will be constant O long run income per capita always returns to the subsistence income O aggregate output always returns to the subsistence income
Q: Subgame perfection is a refinement of Nash Equilibrium that requires Select one: Oa…
A: A subgame perfect equilibrium is a refinement of the Nash equilibrium utilized in dynamic games in…
Q: 7. What is scarcity? In market economies, what determines the distribution of scarce goods and…
A: Scarcity is the basis of the essential problem of Economics i.e the distribution of limited means…
Q: Use the graph to answer the question that follows. Without government intervention, this market…
A: The action that is taken by the government seeking to change decisions that are made by groups,…
Q: What is the Phillips Curve? Explain the theory behind it carefully.
A: A. W. Phillips is credited with developing the economic idea known as the Phillips curve, which…
Q: 9. Below is the total benefit Kenneth estimates he would get for jars of chocolate-flavored hazelnut…
A: We will answer the first question since the exact one was not specified. Please submit a new…
Q: Since the Russian invasion of Ukrain in February 2022 the crude oil price has skyrocketed worldwide…
A: Volatility is the standard deviation of a stock's annualized returns over a given period and shows…
Q: The term capital, as used by economists, refers to a money b the physical space in which…
A: In economics, the term capital is used in economic activity when an individual or a firm wants to…
Q: Why are some economists who favor free trade concerned about the proliferation of regional trad…
A: Answer: Regional trade agreements take place between countries of a geographical area to decrease…
Q: If output is above the level of spending balance, then A income will decrease. income will increase.…
A: Good market equilibrium is where aggregate demand and aggregate supply are equal at certain price…
Q: In which of the scenarios below would Fed decisions geared towards eliminating GDP gaps lead to a…
A: Introduction : inflation is a general increase in the prices of goods and services in an economy.
Q: What is GDP deflator? What for do we use GDP deflator?
A: Gross domestic product refers to the total value of all final goods and services generated in an…
Q: IN a closed economy,The price level is fixed at 1. The money supply is 100. c= consumer expenditure;…
A:
Q: Suppose that the government is going to auction off permits equal to one third of total emissions in…
A: Marginal abatement cost is the cost of reducing environmental negatives such as pollution. The…
Q: Q. Suppose the exchange rate between the Malaysian ringgit and British Pound is: RM 5.4860/ £.…
A: The rate that depicts the rate at which one currency is measured in terms of another currency in…
Q: QUESTION 7 Calculate the Multipler using the Information provided in the table: Year Multiplier GDP…
A: Since you have provided multiple questions, we will solve the first one for you. If you want any…
Q: An offer for an unliateral contract is accepted by: a. promising to perform the requested action. b.…
A: At the marketplace, to make a business activities, there are different types of agreement made…
Q: How would the creation of an import quota affect the market for a good? Imported supply increases…
A: Import quota puts restrictions on quantity that can be imported.
Q: A government may create and regulate natural monopolies because O A they can handle the costs of…
A: A natural monopoly is a type of monopoly that experiences economies of scale, i.e., a decrease in…
Q: A profit maximizing firm produces output using capital, K, and labour, L, in the following…
A:
Q: Using the Lucas Island model show that random shocks to the money supply will impact output while…
A: The Lucas Island Model refers to the model in economics that states the link between money supply…
Q: Question 13 If the consumption function is given by C = ? (Y – T) and there is a tax cut of $200,…
A: Since you have posted multiple question, we will solve first question for you. If you want any…
Q: 3. To advertise or not to advertise Suppose that Expresso and Beantown are the only two fims that…
A: The dominant strategy is the best procedure picked by players. At the point when the two players…
Q: Question: Hilda's Hair Hysteria earned $3, 750 in total revenue last month when it sold 125…
A: In economics, elasticity is an monetary degree to decide the responsiveness of the alternate in the…
Q: Determine whether each of the statement is true, false, or uncertain. If the statement is false or…
A: The diminishing marginal product of labor is a short-run phenomenon, which explains that after…
Q: For each of the following transactions, 1) determine whether it should be included in the…
A: Gross domestic product is the sum total of final values of services and goods produced in a year.
Q: Q3) A) The demand and supply functions of a product is given as P=200 – 0.5Q and P = 100+0.5Q,…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Sales had been slow at Martha's Fresh Flowers for several months, but then business starting picking…
A: Business cycles are defined as the alternate periods of expansion and contraction in the business…
Q: In macroeconomics the term investment mostly refers to O businesses' purchases of new buildings and…
A: Macroeconomics is the branch of economics that deals with issues concerning the economy as a whole.
Q: Suppose a firm's total cost and marginal cost are given by TC = 192 + 10Q + 3Q² and MC = 10 + 6Q.…
A: Average total price is called the sum general of all manufacturing prices divided with the aid of…
Q: Determine whether each of the statement is true, false, or uncertain. If the statement is false or…
A: Economies of scale means production at large which reduces the per unit cost of firm .
Q: keep a Renewable Term policy active, the insured must do which of the following? A. Submit a renewal…
A: Renewalable term insurance can offer monetary insurances long before a significant individual…
Q: NeoclassicalEconomics 3.1 Explain the features of Neoclassical approach. 3.2 Make a comparison of…
A:
Q: A publisher plans to sell 200,000 copies of textbook in a year. If it costs $3750 to set up a…
A: Given the information: Plan to sell copies = 200000 Cost to set-up printing = $3750 Cost to print a…
Q: rany given job, how do the economy-wide labour market conditions affect a rker's bargaining power?…
A: *Answer:
Q: 3. Derive and explain the Marshall-Lerner condition. If the Marshall-Lerner condition does not hold,…
A: A Marshall-Lerner condition is a concept that emphasizes the relationship between a country's…
Q: For each of the following monetary policy tools: A. The BSP buys securities in the open market. B.…
A: The Central Bank of a nation uses the monetary policy to check and balances the interest rate and…
Q: 1. What is the purpose of segmenting the market? Please explain your answer.
A: Disclaimer: “Since you have asked multiple questions, we will solve the first question for you. If…
Q: A decorator, who is a monopolist, makes two types of specialty picture frames. From experience, the…
A: We are given, 1st type of frame, Production = x unit Selling price of 1 unit = (100 - 2x) dollars…
Q: The figure below illustrates the practice of international price discrimination by a Chinese shoes…
A: Price discrimination occurs when the firm is charging different prices to a different group of…
Q: What will happen to the market supply curve of gadgets if a new gadget producer enters the market?…
A: Supply Curve: - supply curve is the graphical way of showing the relationship between the quantity…
Q: Distinguish the GDP and GNP with example?
A: Gross domestic product is defined as the total worth of all final goods and services produced in a…
Q: Production possibilities of the United States (USA) and South Africa (RSA): USA RSA wheat…
A: Production Possibilities frontier shows the possibility of the production of two goods and services…
Q: explain when and how the government intervenes in the economy
A: In a free market economy, the resources of production are usually owned by the private individuals…
Q: D. - $489 billion.
A:
Q: explain how taxes and subsidies can be used to internalize externality. Next, give an example of the…
A: Tax is an obligatory instalment to the public authority by the pay gatherings. The subsidy is an…
Q: With the helps of diagrams of money market, IS-LM and AS-AD, demonstrate and explain the effects of…
A: The money demand curve shows the inverse relationship between interest rate and the quantity of…
Q: What is the ethics and accountability in public service and governance? Discuss its important and…
A: In the case of governance accountability is considered as morals and administration, in comparison…
Q: A fam han the production function F(L, K)- 2 min(L, 10K). The curent input level in (L. K)- (12, 1).…
A: The marginal product of capital (MPK) measures the change in output produced due to the change in…
Q: Consider the following data on the X-product: a) What was the growth rate of nominal GDP between…
A: GDP measures the market value of final goods and services produced by an economy during a given…
Q: What is GDP per capita? What for do we use GDP per capita?
A: "GDP measures the market value of all the final goods and services produced in a nation at a…
Step by step
Solved in 3 steps
- 1. Country A and B both have the production functionY = F (K, L) = K ½L ½or Y = K0.5 L0.5 a) What is the per-worker production function, y= f (k)? Please make sure to write specificfunctional form of the per-worker production function. b) Assume that neither country experiences population growth nor technological progressand that 4 percent of capital depreciates each year. Assume further that country A saves 24percent of output each year and country B saves 16 percent of output each year. Using youranswer from part a) and the steady-state condition, find the steady-state level of capital perworker for each country. Then find the steady-state levels of income per worker for eachcountry and steady-state level of consumption per worker for each country.Farmland is a developing country with the following production function:Y = 24L2/3K1/3with Y = Output levelL = Quantity of laborK = Quantity of machinesa. Find the real rate of return for labor. Show your calculation. b. Suppose Farmland is granted some extra machines for production.How would this affect the real rate of return for labor? Explain by using theresult in (a).y=zk^2/3 For this economy, derive the competitive equilibrium, and derive the equation that solves for a steady state capital stock per worker.
- Exercise 4: Growth and capital over-accumulationSuppose two countries, A and B, with the same production function Y = KαL1−α. Thevalue of α is 0.30, the growth rate of population is 2% and the depreciation rate is 5%.a) Show that with price-taking firms the share of labor must be 1 − α.b) Compute the stock of capital, output and consumption per unit of labor in the steadystate if the savings rates were 25% for country A and 35% for country B.c) Compare both economies to the Golden Rule.d) Explain what would happen to both countries if suddenly their savings rate becamethe Golden Rule savings rate.Suppose an economy begins in steady state. By what proportion does per capita GDP change in the long run in reponse to each of the following changes? Production function is Y=AK^1/3L^2/3 a. Investment rate doubles b. depreciation rate falls by 10% c. Productivity level rises by 10% d. Earthquake destrys 75% of the capital stock e. Generous immigration policy lead the population to doublePlease the answer correct please ASAP Don't answer by pen paper please. he golden rule level of capital refers to: Question 19Answer a. the level of capital that maximises output per worker. b. the level of capital that maximises the standard of living. c. the level of capital that maximises the level of output in the steady state. d. the level of capital that maximises consumption per worker. e. the level of capital that maximises consumption per worker in the steady state.
- Suppose an economy begins in steady state. By what proportion does per capita GDP change in the long run in reponse to each of the following changes? Production function is Y=AK^1/3L^2/3 d. Earthquake destrys 75% of the capital stock e. Generous immigration policy lead the population to double Fast answerConsider an economy with a Cobb-Douglas production function with α = 1/3 that begins in steady state with a growth rate of technological progress of g of 2 percent. Consider what happens when g increases to 3 percent. (a) What is the growth rate of output per worker before the change? What happens to this growth rate in the long run? (b) Perform a growth accounting exercise for the economy, decomposing the growth rate in output per capita into components contributed by capital per capita growth and technology growth. What is the contribution of the change in g to output per capita growth according to this formula? (c) In what sense is the growth accounting result in part b producing a misleading picture of this experiment? Explain why this is the case.Assume there is a second economy ( country B ) with everything identical to country A except for the rate of population growth , which is 2 percent . Answer the following questions for country B. Assume both countries start a k = 0 , which country grows more in the short run ( before steady state is reached ) , as given by the rate of growth of output per worker ? ( hint : the further away from steady state , the faster the growth towards it ). O. Country A O. Same for both O. Country B
- Assume that Economyland’s production function is Y = F (K, L) = K 0.5 L 0.5Where Y is output level, K is the amount of capital input, and L is the amount of laborinput. a) What is the per-worker production function, y= f (k) for Economyland? b) Assume that 10 percent of capital depreciates each year and savings rate is 20 percent,find the steady-state level of capital per worker for Economyland. Then find the steady-state levelof income per worker and steady-state level of consumption per worker. c) Is it possible to save too much? Why?Suppose that total capital and labour both increase by the Suppose that total capital and labour both increase by the same percentage amount so that the amount of capital per worker k does not change. Writing the production function in per-worker terms, y = f(k), requires that this increase in capital and labour must not change the amount of output produced per worker y. Use the growth accounting equation to show that equal percentage increases in capital and labour will leave output per worker unaffected only if aK + aN = 1. Suppose that total capital and labour both increase by theIn macroeconomics, the connection from inputs to outputs forthe entire economy is called _______________. a)physical capital b)a production function c)human capital d)an aggregateproduction function