Explain The difference between induced and autonomous investment in economics..

Q: Since the end of World War II, manufacturing firms in the United States and in Europe have been…

A:

Q: What is a capital gain, and what role does it play in the arbitrage equation?

A: Arbitrage Equation The arbitrage equation a very important tool in economic analysis that helps…

Q: Consider the following closed economy SI model set up Y = 18000 C = 300 + 0.8(Y − 2500) I = 3500 −…

A:

Q: In the Romer model, if an economy allocates all of its labor to ideas, it will OA. reduce the…

A: The basis of the Romer model is the knowledge, which it considers to be cumulative. Romer…

Q: a) Explain the characteristics of the production function used in the Heckscher-Ohlin (H-O) model.

A: Hi, since there are multiple parts, we would solve the first part for you. The following problem has…

Q: e demand for investment goods will increase along the optimal investment schedule. e optimal…

A: The marginal product of labor (or MPL) implies to a company's increment in total production when one…

Q: Neoclassical Economics, markets lead to maximum social welfare, if particular conditions are…

A: In Neoclassical Economics, markets lead to maximum social welfare, if particular conditions are…

Q: Explain the difference between saving andinvestment as defined by a macroeconomist. Whichof the…

A: Saving and investment are often used interchangeably. But the two terms are different as defined by…

Q: State 3 characteristic of the consumption function ?

A: Consumption function represents the functional relationship between total consumption and gross…

Q: How does investment as defined by economists differ from investment as defifined by the general…

A: Investment in capital stocks, such as buildings, machinery and infrastructure, is an economic…

Q: Consider the following production function: Y; = AKSH}-«L; where Kris capital, He is human capital,…

A: Given Model Yt=AKαtHt1-αLβtHere K = capitalH= Human capitalL= laborA=Technology (Constant)

Q: What is “upward and downward causation” in institutional economics?

A: The term institutional economics was announced by Walton Hamilton at a meeting of the American…

Q: You are given the information of three sector economic model: C = 300+ 0.8YD 1 = 100 G = 200 T=50…

A: We know that any economy is in equilibrium when: Y = C + I + G Also Yd = Y - T Yd means disposable…

Q: What are the steps involved in plugging in the highlighted equation (the real interest rate) into…

A: Answer: Given, 1+r=P1P21+i⇒11+i=P1P211+r....equation 1b1=P1Y1-C1      Givenb1=11+iP2C2-Y2…

Q: a. Discuss the assumptions of the Fisher’s Intertemporal Choice Model  b. Using Fisher's…

A: We are going to discuss Intertemporal model to answer this question.

Q: I need help for this, no need for long explanation. Just the answer. thanks a lot.   1. Income…

A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: When Ani’s income changes from $400 to $1000, her saving changes from $100 to $580. Ani’s Marginal…

A: The Keynesian consumption function shows the relationship between consumption expenditure and…

Q: Explain how the income from production is distributed to labor and capital according to the…

A: It shows the division of National income among factors of production. The assumptions made under…

Q: In a finance class, the purchase of stock in a company would tend to be labelled “investment,” but…

A: Investment goods in macroeconomics can be understood as goods that are used either to produce…

Q: - Discuss the three pillars of the neoclassical economy. How are they linked? Describe in terms of…

A: The answer to both these questions is as follows:-

Q: Which of the following is true of saving and investment? a.Saving and investment can never be…

A: a.Saving and investment can never be undertaken together by the same person. This statement is…

Q: True, False, or Uncertain? Give rationale to your answers. Provide graphs. Capital in all sectors…

A: A Tax is forced on the capital in the manufacturing sector, the capital in every one of the sectors…

Q: swer the following in the space provid ne attributes of a "good" econometric model? at are the…

A: A)The attribute of a good economic model are:- i) high R squared value which explains the…

Q: True, False, or Uncertain? Give rationale to your answers. Provide graphs. Capital in all sectors…

A: Capital Deepening is defined as an increase in the proportion of the stock in capital to the number…

Q: What is the value of autonomous consumption?

A: Consumption function: C = c + MPC * Y Where C is consumption c is autonomous consumption. It is the…

Q: Consider the following production function: Y; = AKSH!-"L %3! where K; is capital, H;is human…

A: Given information Yt=AKαtHt1-αLβHere K=capitalH=Human capitalL=worker

Q: Explain the short-run and long-run effects of an exogenous decrease in investment by explanation and…

A: The aggregate supply is the total amount of services and commodities that firms in an economic plan…

Q: Suppose that society decided to reduce consumption and increase investment. Briefly explain what…

A: The economics as a study is based upon the idea that the resources which are present with the…

Q: what are the factors that contribute to econmic grow

A: Economic growth is the quantity aspect of the economy. An economy's growth is directly related to…

Q: Explain, using the concept of the elements of model, the statement-“A model is a theoretical…

A: The study of economics deals with how resources are allocated in a manner that most of the human…

Q: When does the optimal investment schedule shift?

A: The ideal hazardous investment mix is regardless of wealth, non-capital income, age, and eagerness…

Q: An endogenous variable is a variable explained by an economic model. An exogenous variable is a…

A: Introduction The statement is given about two variables of economic model.

Q: 34 Please answer the following three questions based on this modified Malthusian model: suppose…

A: 34. Given : Yt=AtLtα Marginal Product of labor : =dYtdLt=d(AtLtα)dLt=αAtLtα-1 Hence,the correct…

Q: than 250 words

A: An opportunity for investment in any situation exists where there is an option of purchasing…

Q: Explain why the AVC curve is "U shaped"?

A: Step-1 Marginal Cost(MC) is the increment in the total cost(TC) due to a unit increment in the…

Q: . What is the amount of economic investment that has resulted from BBQ's actions? $ million . How…

A: Here the restaurant chain build 20 new restaurants.

Q: Consider the following investment opportunity:

A: Since the question you have posted consists of multiple parts, we will answer the first part for…

Q: What is the relationship between average production and managerial production?

A: Total product refers to the output amount that can be produced by a given amount of variable factor,…

Q: to people who make over $50,000 and are permanent. Will you work more or less when marginal tax…

A:

Q: Briefly explain whether each of the following statements is true or false. 7. A decline in total…

A: Solow Swan model explains the growth of output in the long run taking capital accumulation,…

Q: If a large corporation such as Walmart makes decisions that dramatically affect their stock prices,…

A: Economics is divided into two branches- microeconomics and macroeconomics. Microeconomics studies…

Q: uestion 1: In the case of a 2 sector economy model, when the income increases from RM 400 mil to RM…

A: Given information: Income increased from 400 million to 450 million, and as a result consumption…

Q: how does the circular flow model of  “incomes” and “expenditures” provide a foundation for economic…

A: The circular flow of income is an economic paradigm that represents the aggregate of market…