Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Microeconomics Expert

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 suppose that iny 2 ilondon 6 xa -1 and rp 2

Question: Suppose that i_NY = 2%, i_London = 6%, xa = -1%, and RP = 2%, where i_NY (i_London) denotes the interest rate in New York (London), xa denotes the expected appreciation of the foreign currency (i.e., the pound) ...

Question impact of government regulation please respond to

Question: "Impact of Government Regulation" Please respond to the following: Take a position on whether the banking industry needs more or less government regulation. Support your position with two (2) examples of the im ...

Question purpose of assignmentthis assignment will

Question: Purpose of Assignment This assignment will introduce students to the U.S. Department of Labor's Bureau of Labor Statistics (BLS) data and provide students with the skills to calculate inflation and interpret th ...

Question consider an economy with the representative

Question: Consider an economy with the representative consumer, representative firm, and government. Suppose that G = 12. The consumer's preferences over the consumption good and leisure are given by the utility function ...

Question it is hot day and bert is thirsty here is the

Question: It is hot day, and Bert is thirsty, here is the value he places on a bottle of water: Value of first bottle $7 Value of second bottle $5 Value of third bottle $3 Value of fourth bottle $1 a) From this informati ...

Question in footnote 7 we suggested that if transaction

Question: In footnote 7 we suggested that if transaction costs are too high, a government subsidy to beekeepers might produce an efficient solution to the external benefit problem. Explain why. The response must be typed ...

Question define and draw the utility possibility frontier

Question: Define and draw the utility possibility frontier. In your picture explain what is meant by pareto efficient. Social welfare functions can be used to pick out a point on the utility possibility frontier. Show th ...

Question 1 discuss the significance and the impact that the

Question: 1) Discuss the significance and the impact that the environment has on human health. Provide examples and discuss how they relate to the practice of public health today. Your response should be at least 210 wor ...

Question what is the maximum amount you would pay for an

Question: What is the maximum amount you would pay for an asset that generates an income of $10,000 at the end of each of the three years of the opportunity cost of using funds is 3.5 percent? The response must be typed, ...

Question why is there asymmetric information in the labor

Question: Why is there asymmetric information in the labor market? What signals can an employer look for that might indicate the traits they are seeking in a new employee? The response must be typed, single spaced, must ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

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.

Ask Now Help with Problems, Get a Best Answer

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