For IS-PC-MR, three equation model, what are the the most crucial economic indicators of interested in this framework? Explain how increasing unemployment benefits would affect the labour market in this model
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For IS-PC-MR, three equation model, what are the the most crucial economic indicators of interested in this framework? Explain how increasing
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- Consider an economy for which y = Ake with the parameter values as listed: A=19, s=0.4, n=0.3, d=0.2 ,0 =0.5. Compute the steady state value for k. As a first step, graphically depict an economy in steady state. Be sure to label the axes, all lines, and steady state for k, y, c, and i . Suppose that productivity A decreases. Include on your graph the impact this will have on the economy. Be sure the direction of change is clear. The graph should depict the original and new steady states and clearly indicate which is which.Consider now the two-period model in general equilibrium, so that prices, investment and labour supply are endogenous, i.e. the production economy. Analyse and carefully explain graphically and in words the general equilibrium effects of a decrease in TFP(total factor production) for a benchmark economy with no frictions.a.Assume that α(0, 1). Draw a diagram that describes the evolution of kt, and show that there exists a unique steady state, k* > 0. Label properly. also Find the expressions for the steady state variables k*, y*, and c* in terms of the parameters of the model. , b.Now, assume that α = 1. Draw a diagram that describes the evolution of kt, and show that income per worker can grow indefinitely in this case. Label properly. c.Discuss the key difference(s) between the scenario in a and b as much as you want.
- 5) Suppose, Nepal was in general equilibrium before COVID-19. Explain the effect of increase in labor supply due to returnee’s migrants. Assume that everything else has not changed at all. Use IS-LM-FE model to answer.How does the National Bureau of Economic Research (NBER), set the recession, peak and trough dates in the U.S. and what data is used as input?dont use chatgpt answer In the specific-factors model, labor migration from Mexico to the United States will cause _________ in U.S. low-skilled wages and _________ in Mexican low-skilled wages. A) increases; decreases B) increases; increases C) decreases; decreases D) decreases; increases
- Explain what the Industrial Revolution was and where it began.How is the concept of technology, as defined with the aggregate production function, different from our everyday use of the word?Consider now the two-period model in general equilibrium, so that prices, investment, and labor supply are endogenous, i.e. the production economy. Analyze and carefully explain graphically and in words the general equilibrium effects of a decrease in TFP for a benchmark economy with no frictions.
- 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 doubleSuppose 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 answerExplain the weaknesses of the classical economic thought and the wayMarxist economic thought criticized it. Briefly explain main differences of the Marxist economicthought from the orthodox economics.