For a competitive equilibrium in a two-period model, must the government's present-value budget constraint hold?

Q: Assume that an economy is based on two industrial sectors, agriculture (A) and energy (E). The…

A: Answer: Given, M=0.40.40.40.4D=43 I-M=1001-0.40.40.40.4I-M=0.6-0.4-0.40.6The formula of (I-M)-1 is…

Q: As the interest rate rises, does the intertemporal budget constraint become steeper or flatter?

A: an intertemporal budget constraint is a constraint faced by a decision maker who is making choices…

Q: Using the Heckscher-Ohlin model, if a nation can shift its factors of production from the production…

A: The Hecksher Ohlin theorem states that a country exports a labor/capital intensive good if it is…

Q: Which one of the following statements about the 2-stage linear city model in topic 4 is correct?…

A: In the first period, firms choose location and in the second period, the firms compete in prices,…

Q: The Bismarck Model in Germany emphasizes equity over choice whereas the Beveridge Model in the…

A: Answer is in 2nd step:

Q: Statement 1 (S1): Complementarities increase the incentives for other agents to take similar…

A: A. True, True

Q: this production function obeys neoclassical assumptions.

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

Q: Consider now the two-period model in general equilibrium, so that prices, investment, and labor…

A: The combined productivity level of all the inputs used in a production function is called as the…

Q: In both the Ricardian and Heckscher-Ohlin models, the relative price of a good in autarky must…

A: The Ricardian model of international trade is developed by David Ricardo and according to this this…

Q: Suppose the market for coffee is described by the standard market model, with upward-sloping supply…

A: Supply curve is positively sloped and it shows the direct relationship between price and quantity…

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: If you suspect the presence of multicollinearity, how would you characterize the degree of…

A: Classical Linear Regression Model (CLRM) is the basic model of econometrics. The following are the…

Q: Find the equilibrium solution of given economic models,  a-  Qd = 8 – P2  ,     Qs = P2 – 2

A: A situation or state in which economic forces are balanced is known as economic equilibrium. In the…

Q: What are the drivers/motives behind the geoeconomic strategy?

A: Geo-economics is the branch of economics which study how economy functions in an international…

Q: Explain Ecological Models and also define simplifying assumptions to construct such a model ?

A: Environmental economics is the most important and an essential part of economics, as producers and…

Q: Question 25 Macroeconomic factors used as inputs in multifactor models include: O Earnings growth. O…

A: When talking macroeconomic factors, it can be said that these are the economic variables, which…

Q: which one of two would be more profitable economic model or the socio eonomic model of social…

A: Socioeconomic model: Social-monetary model" alludes to the citizenry's abilities to appreciate…

Q: Suppose Congress cuts spending for the military, and then unemployment rises in the Philippine…

A: Causation refers to the situation where change in one variable (X) affects the other variable (Y).…

Q: For a competitive equilibrium in a two-period model, must there be an equal amount of borrowing and…

A: Two-period model shows how the consumers trade off their current consumption with the future…

Q: Question 1: Neoclassical Growth with Endogenous Labor Supply Consider a neoclassical growth model…

A: Neoclassical growth theory is an economic theory that explains how three driving forces—labor,…

Q: in a capitalist market economy, the decision to save is made by the same people who make the major…

A: The capitalist market is the market that is run by private individuals or business own capital…

Q: Even if preferences and technology are well behaved Walras' law might NOT hold in an economy with…

A: In an economy, there are different laws used to make an analysis of different economic variables and…

Q: Explain the Friedmanian model of NAIRU

A: NAIRU stands for Non Accelerating Inflation rate of Unemployment.

Q: : Y = zN D where Y is the output of the consumption good, z is the exogenous total factor…

A: U(c, l) = aln c + (1-a)ln l (1)

Q: The ‘Stair-Stepped’ Relative Supply curve produced in the Ricardian Model is the result of... A) The…

A: David Ricardo was the proponent of the Theory of Comparative Advantage in the ambit of the…

Q: Which of the following is INCORRECT regarding the reasons why we continue to study the Malthusian…

A: Malthusian population trap:- Malthusian Population Trap is an economic theory. According to Thomas…

Q: Define the meta-theoretical commitments made by orthodox economics.

A: Orthodox economics is otherwise called mainstream economics or neoclassical economics. Neoclassical…

Q: Explain five planning steps that are required to have a good business communication. Take any of the…

A: The five planning steps that are required to have good business communication are: (i) Identifying…

Q: Which of the following is NOT a characteristic of a typical positive economic model?   Group of…

A: Since all are distinct questions, we shall answer the first one only. Please resubmit the other…

Q: Discuss the core notions of the market-friendly approach, one of the three ideological strands…

A: Neoclassical economics is a very wide approach that tries to explain the production of goods and…

Q: The Ricardian model predicts that the market prices for goods with trade cannot be outside the range…

A: A pleasing product purchased by a consumer is an example of a good that satisfies human desires and…

Q: What is meant by "path dependence" in the context of the transition from socialism to capitalism?…

A: Transition societies move through a series of systemic changes aimed at developing market-based…

Q: which of the followings is NOT an assumption of the harrod -domar model? a-closed economy…

A: When talking about the harrod -domar model, it is considered as a Keynesian model of explaining…

Q: Consider the following one-period model. Assume that the consumption good is produced by a linear…

A: U(c, l) = ln c + ln l (1)

Q: Define Dependency Theory?

A: Dependency Theories was developed around the same time as 'decolonization', and 'tried to explain…

Q: Statement 1 (S1): Complementarities increase the incentives for other agents to take similar…

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

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: Indicate how autarkic policies are linked to dependence theories

A: Dependency Theory created in the last part of the 1950s under the direction of the Director of the…

Q: a) What are some of the main assumptions behind the H-O (Heckscher-Ohlin) model. b) What is/are the…

A: a. Assumptions two countries  two factors – capital and labor Countries use same production…

Q: Consider the following one-period model. Assume that the consumption good is produced by a linear…

A: A. Definition of competitive equilibrium: Competitive equilibrium is a condition in which…

Q: The figure below illustrates a two-sector commodity market model that takes into account consumption…

A: Given information

Q: PARTIAL EQUILIBRIUM MODEL P НОME P FOREIGN S Q

A: (a) Excess demand where at price P1 demand is more than the supply in the home.  Excess supply where…

Q: What is the intuition behind the growth rate of non-traded goods consumption as a function of…

A: An improvement in the country's terms of trade in one country states that the non traded good can…