+61-413 786 465

info@mywordsolution.com

## Economics

 Basic Economics Macroeconomics Microeconomics Business Economics Econometrics International Economics Managerial Economics Game Theory Public Economics

problem: A country has the per-worker production function yt = 6 kt0.5, where yt is output per worker and kt is the capital-labor ratio. The depreciation rate is 0.1 and the population growth rate is 0.1. The saving function is:

St = 0.1 Yt,

Where St is total national saving and Yt is total output.

a) Determine the steady-state value of capital-labor ratio?

b) Determine the steady-state value of output per worker?

c) Determine the steady-state value of consumption per worker?

problem: According to the Solow model, how would each of the given affect consumption per worker in the long run (that is, in the steady state)? Draw a figure and elucidate.

a) The destruction of a part of the nation’s capital stock in a war.

b) A permanent raise in the rate of immigration (that raises the overall population growth rate).

problem: Money demand in an economy in which no interest is paid on money is:

Md/P = 500 + 0.2Y - 1000i

a) Assume that P = 100, Y = 1000, and i = 0.10. Find out real money demand, nominal money demand and velocity.

b) Supposing that the money demand function as written holds, show how velocity is influenced by a raise in real income, by an increase in the nominal interest rate, and by an increase in the price level.

problem: The income elasticity of money demand is 2/3. Real income is expected to grow by 4.5% over the next year, and the real interest rate is expected to remain constant over the next year. The rate of inflation has been zero for several years.

When the central bank wants zero inflation over the next year, what growth rate of the nominal money supply would it prefer?

problem: Suppose that prices and wages adjust rapidly and hence the markets for labor, goods, and assets are always in equilibrium. What are the effects of each of the given on real money demand and the current price level? Describe in words.

a) The temporary increase in government purchases.

b) The reduction in expected inflation.

Microeconomics, Economics

• Category:- Microeconomics
• Reference No.:- M9241

Have any Question?

## Related Questions in Microeconomics

### Question in september 1999 senator edward kennedy released

Question: In September 1999, Senator Edward Kennedy released a report saying the minimum wage should be raised to \$15.28 per hour. The reason for such a big increase, according to Kennedy, was that no one should have to ...

### Question look at exercise compute the opportunity costs of

Question: Look at Exercise. Compute the opportunity costs of producing sweaters and wine in both France and Tunisia. Who has the lowest opportunity cost of producing sweaters and who has the lowest opportunity cost of pr ...

### Question my parking permit at the university gives me

Question: My parking permit at the university gives me rights to use a very convenient lot reserved exclusively for faculty. Even if I arrive at a peak hour like 10 a.m. I can almost surely find a space in it. Your stude ...

### Question the lst company has contracted to make the

Question: The LST Company has contracted to make the following payments: \$8500 immediately; \$850 at the end of year 1; \$1050 at the end of year 2; \$1250 at the end of year 3 and \$1450 at the end of year 4. What fixed amo ...

### Question - a collectivity consists of three persons a b c

Question - A collectivity consists of three persons, A, B, C. Demand for some collectively provided service, x, being for person A, P = 40/x; for person B, P = 20/x; and for person C, p = 10/x. The marginal cost is 10. ( ...

### Question if trade increases world gdp by 1 per year what is

Question: If trade increases world GDP by 1% per year, what is the global impact of this increase over 10 years? How does this increase compare to the annual GDP of a country like Sri Lanka? Discuss. The response must be ...

### Question a common economic experiment is called the

Question: A common economic experiment is called the "ultimatum game." Subject A receives a small amount of cash, say \$10. She can give some whole dollar amount to subject B, a stranger whom she cannot see and who cannot ...

### Question a when marginal cost is lower than average

Question: a. When marginal cost is lower than average variable cost, what is happening to average variable cost? When marginal cost is above average variable cost, what is happening to average variable cost? (Hint: look ...

### Question topic the annual budget deficit in the usmake an

Question: Topic: The Annual Budget Deficit in the US Make an assessment as to whether any of the collaborative models - such as the mega-community model or some of the approaches discussed in Friedman's writings offer ho ...

### Question in an attempt to help the farm sector congress has

Question: In an attempt to help the farm sector, Congress has several times passed legislation initiating and then extending the requirement that ethanol be blended with gasoline sold at the pump in many states. Because ...

• 13,132 Experts

## Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

### Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

### Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

### Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of \$ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

### Compute the present value of an 1150 payment made in ten

Compute the present value of an \$1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

### Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of \$ 699 per year for 19 years, given a discount rate of 6 percent per annum. As