In the Solow growth model, a permanent increase in the savings rate leads to:
Write out a cobb Douglas production function where capital r…
Write out a cobb Douglas production function where capital receives one-fourth of total income. What kind of returns to scale does this function exhibit?
Write out the National Income Accounting Identity? What does…
Write out the National Income Accounting Identity? What does each component measure?
Give two examples of fiscal policies that shift the IS curve…
Give two examples of fiscal policies that shift the IS curve right in the IS-LM model
The Long Run Aggregate Supply curve is horizontal because ou…
The Long Run Aggregate Supply curve is horizontal because output is determined solely by factors of production and technology
Just after World War II, Japan and Germany experienced much…
Just after World War II, Japan and Germany experienced much larger GDP growth rates than most other countries. Using the Solow model, how would you explain this?
Suppose an economy is described by the Solow model. The rate…
Suppose an economy is described by the Solow model. The rate of population growth is 1%, the rate of technological progress is 3%, and the depreciation rate is 5%. Suppose the savings rate is 10%. In the steady state, output per worker grows at the rate of
Discouraged workers—those who have stopped looking for work…
Discouraged workers—those who have stopped looking for work because they believe no jobs are available—are classified as:
Explain how an artificial decrease in interest rates and the…
Explain how an artificial decrease in interest rates and the resulting increase in the supply of loanable funds leads to a recession according to the Austrian Business Cycle Theory
A nurse is obtaining vital information for a client with maj…
A nurse is obtaining vital information for a client with major burns. Why is it essential to have an accurate and current body weight for this patient?