2:37 PM Mon Apr 17entscordingsO3camino.instructure.comIt is impossible to determine which will be favored.Natural ResourcesQuestion 3Which of the following policies would increase the likelihood of economic growth in acountry which has recently discovered oil?O Dedicating some of the new revenue to the diversification of labor and capital.Increasing the salaries of government employees in the Energy Department.O Increasing government expenditures in anticipation of large future oil revenues.Dedicating some of the new revenue to intensive training in oil-related jobs.35%Question 4

In simple terms if in a country there is a rise in the production of goods and services over a…

Answered: Which of the following policies would…

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter7: Production And Growth

Section: Chapter Questions

Problem 5CQQ

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) Consider the following IS-LM model set upC = 300 + 0.8(Y − 2500)I = 3500 − 400(r)G = 3000T = 2500(M/P)s = 2600Md = 2000 −1000(r) + 0.2(Y)(a) Using the IS equation, if r is 3 howmuch is Y?(b) Using the LM equation, if Y is 19000how much is r? (c) Find equilibrium r and Y, andplot IS-LM equilibrium
Assume that an individual expects to work for 40 years andthen retire with a life expectancy of an additional 20 years.Suppose also that the individual’s earnings increase at a rateof 3 percent per year and that the interest rate is also 3 percent(the overall price level is constant in this problem). What(constant) fraction of income must the individual save ineach working year to be able to finance a level of retirementincome equal to 60 percent of earnings in the year just priorto retirement?
Why dues productivity growth in high-income economies not slow down as it runs into diminishing returns from additional investments in physical capital and human capital? Does this show one area where the theory of diminishing returns fails to apply? Why or why not?
Would you expect capital deepening to result in diminished1etmns? Why or why not? Would you expect improvements in technology to result in diminished returns? Why or why not?
Assume there are only two producing sector Y & Z in an economy. Calculatea) Gross value added at market price by each sector b) National income from the followings:Items Amount in CroresNet factor income from abroad- 20Sales by Y= 1000Sales by Z= 2000Change in stock of Z= -200C Closingstock of Y= 50 Opening stock of Y= 100Consumption of fixed capital by Y & Z= 180Indirect taxes paid by Y & Z= 120Purchase of raw material by Y= 500Purchase of raw material by Z= 600Exports by Z= 70
(50 points) Consider the two-period economy with investment discussed in class. Forthe sake of simplicity, assume that the utility is time separable and that the per-periodutility is equal to:u(C) = log CAssume also that the technology to produce the consumption goods has constant returns to scale. Moreover, capital is the only input to production. Hence the currentperiod technology can be represented as:Y = zK1where Y , K, and z stand for output, capital and total factor productivity in the currentperiod. The future period technology is akin to the current period technology. There isno government expenditure in the current and future period so that G = 0 and G0 = 0.Finally there is full capital depreciation, namely δ = 1.(a) (10 points) Write down the social planner’s problem. State the variables withrespect to which the social planner maximises.(b) (10 points) Derive the first order conditions to the planner problem. Rearrangethere condition to find the conditions characterising the…
14)Suppose that the annual rates of growth of real GDP of Econoland over a five-year period are as follows: Year Growth Rate (%) 1 3 2 1 3 – 2 4 4 5 5 Instructions: Round your answers to 2 decimal places. a. What was the average of these growth rates in Econoland over these 5 years? b. What term would economists use to describe what happened in year 3? (Click to select) Expansion Recession c. If the growth rate in year 3 had been a positive 2 percent rather than a negative 2 percent, what would have been the average growth rate?
No plagrisum and correct answer please. Please do all four parts..Thank You advance Consider two commodities viz. smartphones and travel bags and two countries viz. Bangladesh and South Korea. Suppose the production of both the commodities is fully mechanized using electricity as an input in both the countries. The amount of electricity hours needed to produce one unit of each commodity is a follows: Hours per unit Smart Phones Travel Bags Bangladesh 6 1 South Korea 1 3 The total units of electricity available in Bangladesh is 1000 units while that in South Korea is 2000 units. i. Calculate the opportunity cost of each commodity for each country and explain which country has comparative advantage in production of smartphones ii. If each country decides to distribute its electricity supply in production of each good in equal proportions, what will be the total supply of smartphones and travel bags? iii. If each country decides to allocate its electricity fully in the…
You are an economic advisor to the government. Discuss your opinion . a) How COVID-19 pandemic will affect the consumption behavior as well as the investment done by the firms and household for the next two years? b) What are the actions or policies that the government can implement to face this situation? please answers with analysis and --graph (if possible)
Assume:         PQ = $2.00                  PL = $2.00                               PK = $4.00 K         MPK    MP/PK            MRP/PK          L          MPL      MP/PL                   MRP/PL 1          28        7 14 1          15        5 10 2          24        6 12 2          12        4 8 3          20        5 10                    3          9          3 6 4          12        4 8 4          6          2 4 5          8          2 4 5          3          1 2 6          4          1 2 6          1          0.5 1 7          2          0.5 1 7          0.5       0.25 0.5 8          1          0.25 0.5 8          0.25     0.13…
Assume:         PQ = $2.00                  PL = $2.00                               PK = $4.00 K         MPK    MP/PK            MRP/PK          L          MPL      MP/PL                   MRP/PL 1          28        7 14 1          15        5 10 2          24        6 12 2          12        4 8 3          20        5 10 3          9          3 6 4          12        4 8 4          6          2 4 5          8          2 4 5          3          1 2 6          4          1 2 6          1          0.5 1 7          2          0.5 1 7          0.5       0.25 0.5 8          1          0.25 0.5 8          0.25     0.13…
Assume:         PQ = $2.00                  PL = $2.00                               PK = $4.00 K         MPK    MP/PK            MRP/PK          L          MPL      MP/PL                   MRP/PL 1          28        7 14 1          15        5 10 2          24        6 12 2          12        4 8 3          20        5 10 3          9          3 6 4          12        4 8 4          6          2 4 5          8          2 4 5          3          1 2 6          4          1 2 6          1          0.5 1 7          2          0.5 1 7          0.5       0.25 0.5 8          1          0.25 0.5 8          0.25     0.13…

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