Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Microeconomics Expert

Foreign aid from rich to poor countries is an important and controversial topic in economic growth. Suppose that a rich country gives a large quantity of foreign aid to a poorer country and the foreign aid comes in the form of physical capital K (power plants, factories, etc.).

(a) Using the Solow model, describe how this gift of foreign aid a?ects output in the poorer country over time and in the long run? How does this answer depend on whether the poorer country is above, below, or at its steady state prior to receiving the foreign aid?

(b) Suppose now that the poorer country is initially in its steady state. Assuming this gift of foreign aid occurs in the year 2010, draw both a Solow diagram (that includes output) to describe the dynamics of the poorer country's economy as well as a diagram showing how its output evolves over time.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M941768

Have any Question? 


Related Questions in Microeconomics

Digital media power point presentationdigital media has

Digital Media Power point presentation Digital media has changed the ways ideas, information, and arguments in society are communicated both locally and globally. Individuals and organizations frequently use digital medi ...

Httpswwwyoutubecomwatchvkgsiduyw7wwhat was the promise of

https://www.youtube.com/watch?v=KGSID_Uyw7w What was the promise of capitalism? Discuss the important milestones and historical developments in economic theory and specify the contributions of each of the profits.

Assignmentplease make sure all graphs are clearly labeled

Assignment Please make sure all graphs are clearly labeled. Each of these questions should be answered with complete sentences. Due at the start of class Sept 27th; no late homework is accepted. All questions are taken f ...

Microeconomicsassignment capitalism and the us economyin a

Microeconomics Assignment: Capitalism and the U.S. Economy In a command or planned economy, the government, not the market, regulates the factors of production and economic activities considered essential to the function ...

Answer all the questionsq1 assume that the home h and

Answer all the questions: Q1. Assume that the home (H) and foreign (F) countries produce two goods apples (A) and bananas (B) by using labor. The unit labor requirements in A and B are given in two countries as follows: ...

Topic 1 costs and economies of scaleyou have learned a good

Topic 1: Costs and Economies of Scale You have learned a good deal about production costs and profit in this unit. You have also learned that accountants and economists calculate profit differently. Moreover, many suppli ...

Discussion questionon the surface hinduism appears

Discussion Question On the surface, Hinduism appears radically different from Abrahamic religions like Islam and Judaism. However, Hindu teachings state that there is a single divine essence in the universe. Consider too ...

Economicsselect a new realistic good or service for an

Economics Select a new, realistic good or service for an existing industry, preferably an industry you current work in or one in which you are interested in working. Develop a 1,400-word evaluation of pricing strategies ...

Suppose the consumerworker values two things a consumption

Suppose the consumer/worker values two things: a consumption good C and leisure L. Suppose that there are 24 hours in a day and the consumer/worker has a utility function U (C, L) = C^0.5 + L ^0.5 The price of consumptio ...

The global market place selected is mumbaitoolscorp

The Global Market place selected is Mumbai. ToolsCorp Corporation is a fictitious company that does exist anywhere. For the purpose of this course, it is located it in Tennessee. As members of the senior management team ...

  • 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

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate