(d) Derive the condition under which the economy grows with full employment of both factors of production. This is called the Harrod-Domar condition. What happens if [s – dv]/v falls short of (exceeds) n? (e) Show that a Harrod-Domar like condition also appears in the Solow-Swan mo- del but that the latter model does not suffer from the instability (or knife-edge stability) of the Harrod-Domar model. Make sure that you explain the critical role of capital-labour substitution.

(d) Derive the condition under which the economy grows with full employment of both factors of production. This is called the Harrod-Domar condition. What happens if [s – dv]/v falls short of (exceeds) n? (e) Show that a Harrod-Domar like condition also appears in the Solow-Swan mo- del but that the latter model does not suffer from the instability (or knife-edge stability) of the Harrod-Domar model. Make sure that you explain the critical role of capital-labour substitution.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter5: Business And Economic Forecasting

Section: Chapter Questions

Problem 1.3CE: Logarithms are especially useful for comparing series with two divergent scales since 10 percent...

See similar textbooks

Similar questions

Q. Due to global uncertainty and geopolitical impact and anticipating recession in the waster countries, it is assumed that HUL may delivery the return based on the Indian Economic Condition. RBI projected the Indian Economic growth as follows. Projected Indian Economic Condition Probability of occurrence Possible Return from HUL (in %) Extremely Good 10% 22% Good 20% 18% Average 40% 15% Poor 20% 8% Severely Poor 10% 4% In this situation, if we invest in HUL, how much return can be expected? Also, suggest the possible risk involved in this investment.
Asap plz 15) International firms will invest in less developed countries at the beginning of their production life cycle, but as production is standardized and sold mainly on prices, they shift production to developed countries.Select one:O TrueO False
Consider the binary variable version of the fixed effects model with an additional regressor, D1; that is, let Yit = β0 + β1Xit + γ1D1i + γ2D2i +...+ γnDni + ui.a) Suppose that n = 3. Show that the binary regressors and the “constant” regressor areperfectly multicollinear; that is, express one of the variables D1i , D2i, D3i, and X0it as aperfect linear function of the others, where X0it = 1 for all i,t.b) Show the result in (a) for general n.c) What will happen if you try to estimate the coefficients of the regression by OLS?
edian household incomes tend to increase from one year to the next. In 2019, the median household income was $64,101 in Madison, Wisconsin, and $42,087 in Milwaukee. In 2020, the median household incomes were $66,847 in Madison and $44,192 in Milwaukee. Find the absolute and relative changes for median household incomes in Madison and Milwaukee from 2019 to 2020. Give any percentage values rounded to the nearest tenth of a percent and dollar values to the nearest whole dollar amount. (a) From 2019 to 2020, the absolute change for median household income in Madison was$ . (b) From 2019 to 2020, the relative change for median household income in Madison was %. (c) From 2019 to 2020, the absolute change for median household income in Milwaukee was$ . (d) From 2019 to 2020, the relative change for median household income in Milwaukee was %. Use the "Add Work" button to show your work and thought process for these calculations. You may type
firm decides to invest X units of capital in Project A and Yunits of labour in Project B. iv. The expected return for each unit of investment is $500 in Project A and $1500 in Project B. However in order to meet the expectations of the firm's ethical and environmental policy values of X and Y must satisfy the constraint x+y-5x-6y= 210. How many units of each type should firm buy in other to maximize total volume? What is the implication of a unit change in investment in capital and (or) Labour Economic Analysis?
Q6 Suppose that at time t=0, half of a "logistic" population of 100000 persons have heard a certain rumor and that the number of those who have heard it is then increasing at the rate of 500 persons per day. How long will it take for this rumor to spread to 80% of the population? ( Suggestion: Find the value of k by substituting P(0) and P'(0) in the logistic equation) a. About 98 days b. About 34 days c. About 19 days d. About 69 days e. About 119 days
If education is provided free of charge to (some or all) students, someone else has to foot the bill.In most cases, this would be the government and thus, by implication, the taxpayer. In the2018/2019 budget of the South African government, the additional allocation to subsidise highereducation and training fully for poor and working-class students amounted to R12.4 billion. In 2019and 2020, it is estimated it will amount to R20.3 billion and R24.3 billion, respectively.”Assuming that education and healthcare are the only expenditure items on the governments budget (and arerepresented by a production possibilities curve), the increase of the above above subsidy represents…a) A movement along the production possibilities frontier.b) A movement towards the production possibilities frontierc) An outward movement of the production possibilities frontierd) An inward movement of the production possibilities frontier
In some ways the state of the world economy is less hostile today than when (then) finance minister Tito Mboweni read his Budget Speech a year ago. Global economic growth rebounded significantly in 2021, after the decimation brought about by the Covid-19 induced recession in 2020.One of the outcomes of this was a sharp recovery in commodity prices, which has resulted in much higher-than-expected mining tax revenue in South Africa. This, in turn, has provided some welcome – albeit limited – breathing space on the fiscal front.The local economy is thought to have grown by more than 4.5 percent in 2021 – the highest annual increase in more than a decade. On balance, the finance minister should be able to meet spending demands (including the extension of the Sassa payments) for the year ahead, without widening the Budget deficit or resorting to punitive upwards adjustments to tax rates.” Define fiscal policy Describe the role of the budget in fiscal policy. Discuss how the policy…
Identify the false statement. a. The productivity increases in manufacturing sector in the USA during the industrial era can be attributed to automation, technology advances, and business process reengineering (BPR). b. In a single-queue, single-server queuing system, if the value of Mu (µ) exceeds the value of lambda (λ), then no queue will form. c. For a single-queue, single-server queuing system, the value of lambda (λ) may exceed that of Mu (µ). d. The SERVQUAL model can be used to assess customer satisfaction based on service quality gaps.
Cobb-Douglas production function Q = Lβ1Fβ2Bβ3 Where L = labour input in worker hours F = fuel input in gallons B = capital input in number of buses Q = output measured in millions of bus miles Suppose that the parameters (α, β1, β2 and β3) of this model were estimate using annual data for the past 25 years. The following results were obtained: β1 = 0.45, β2 = 0.20 and β3 = 0.30 Suppose that capital input (number of buses) is decreased by 3 percent next year (which, certain older buses are taken out of service). Assuming that the other inputs are held constant, determine the approximate percentage change in output. What type of returns to scale appears to characterize the transportation system (ignore the issue of statistical significance)? Discuss some of the methodological and measurement problems one might encounter in using time-series data to estimate the parameters of this model.
Use this method, Exponential decline model, to solve ( in petroleum economics) The production of the oil well decline exponentially, the initial flow rate is 1500 STB/day, the production rate of this well become 120 STB/day in the fourth year, find the production rate after 25 months from the beginning, find yearly production and production rate for this well for the next 4 years?
Which statements are true or false? S1: Different countries face different binding constraints on achievingfaster rates of growth and economic development. S2: A key mission foreconomic development specialists is to help determine the nature of theconstraints for each country.