MACROECONOMICS W/CONNECT
MACROECONOMICS W/CONNECT
18th Edition
ISBN: 9781307253092
Author: McConnell
Publisher: Mcgraw-Hill/Create
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Chapter 22, Problem 1P
To determine

The change in the output per capita in DVC and IAC.

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Question 2 Suppose that the production function is Y = 10K5L5, the population growth rate is 15 percent and the depreciation rate is 5 percent. What is the steady state level of k if the economy saves 30 percent? O 400 O 225 100 O 1000 Question 3 Suppose that the production function is Y 10K SL5, the population growth rate is 15 percent and the depreciation rate is 5 percent. What is the steady state level of y if the economy saves 30 percent? 250 350 150 O 450
"Consider the simple production model studied in class, but with different exponents. Suppose that the production function is Cobb-Douglas. The exponent on capital is 0.1 and the exponent on labor is 0.9. The data for this economy is A=10, KO=300 and the initial population is LO-30. We will assume that everyone in this country works so that population equals employment and per-person GDP equals per-worker GDP. Now suppose that the country receives foreign aid that is used to invest in infrastructure and electric vehicles. As a result, over the next few years, the economyos capital stock doubles to K1=600. Fortunately, no one is killed during the hurricane. In the Capital market the Demand will and the Supply will As a result, the rental rate will Shift to the Right; Remain unaffected; Increase Shift to the Left; Remain unaffected; Fall Shift to the Left; Shift to the Right; Fall Remain unaffected; Shift to the Right; Fall
Explain why U.S. potential GDP per worker per week is greater than that in Europe. What could induce Europeans to work the same hours as Americans and would that close the gap between potential GDP per worker in the two economies? U.S. potential GDP per worker per week is greater than that in Europe because O A. U.S. workers work fewer hours on average but they are more productive than Europeans O B. U.S. workers are more productive per hour of work and they work longer hours than Europeans C. the supply of labor in America is smaller than the supply of labor in Europe O D. the United States uses less capital but they use it more effectively Click to select your answer and then click Check Answer. 2. parts remaining Clear All MacBook Air 80 888 000 000 esc F1 F2 F3 F4 F5 F6 F7 F8 ! @ # $ 1 2 3 4 5 6 7 Q W E Y tab A S D F G H * 00 T R
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