Suppose land increases by 20% and the number of employed workers increases by 25% in country A. Given this information, explain what will happen to consumption per worker at the new steady state equilibrium, following the initial changes.
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Suppose land increases by 20% and the number of employed workers increases by 25% in country A. Given this information, explain what will happen to consumption per worker at the new steady state equilibrium, following the initial changes.
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- “An economy which does not have a strong manufacturing infrastructure cannot continue to make required investment on itself. An economy that grows only by service sector means that it is built on sand.” Sony Member and CEO Akia Morito 1992. Do you agree with Akia Morito’s idea?Refer to the graph shown below. At point A: Which is true? A: the economy has full employment B: economic growth is declining C: inflation tends to be declining D: wages can be lowered due to worker surplusIf the population of a country grows and increases both the labor force and the demand for consumption, the GDP of that country is likely to... A. Depends on other factors B. Fall C. Stay Constant D. Rise
- Investment is driven by all of the following except ____________.Neoclassical Production Function Please write the production function in its simplest form (human capital being included in TFP) and explain the nature of each factor of production.what are the most likely reasons why standard economic models predicted only small effects of TCJA on GDP and average wage growth? Explain.
- In the Malthusian model, suppose that the quantity of land increases. A) using diagrams, determine what effects this has in the long-run steady state and explain your results. b)Plot what happens to the following variables over time as a result of the increase in the quantity of Land, population size and consumption per personThe curve in the figure at right will shift to the right when A. the proportion of the population that is elderly increases. B. population falls. C. the price level falls. D. labor productivity increases. Real GDP per YearPrice LevelThe graphs below depict the initial market for labor (on the left) and the macroeconomic production function (on the right). You will use these graphs to identify the effect of an increase in the number of available workers on employment, Potential GDP, and per-worker productivity. Suppose that a substantial increase in labor force participation increases the supply of labor by 40,000 workers at every value of the real wage. (1) Identify the effect of this event on equilibrium employment in the market for labor, and identify the specific new equilibrium level of employment. (2) Identify the effect of this event on Potential GDP, and identify the specific new level of Potential GDP. (3) Finally, identify the effect of this event on per-worker productivity, and identify the specific new level of per-worker productivity. You should embed a graph that clearly depicts (1) the correct supply shift in the market for labor, (2) the new equilibrium real wage, and (3) the new equilibrium…
- Explain the criticism of life cycle theory of consumption and highlight the importance of economic modelsGiven the following on a closed economy , determine the following. The equilibrium level of consumption The level of investment The level of interest rateEconomists define investment to include Select one: any increase in business inventories the addition of cash to a savings account the purchase of common or preferred stock the purchase of any durable good, e.g. a car or a refrigerator
