Business, 28.06.2020 07:01 daniel1480
Use the neoclassical theory of distribution to pre- dict the impact on the real wage and the real rental price of capital of each of the following events: a. A wave of immigration increases the labor force. b. An earthquake destroys some of the capital stock. c. A technological advance improves the pro- duction function. d. High inflation doubles the prices of all factors and outputs in the economy.
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Consider an economy where the government's budget is initially balanced. the production function, consumption function and investment function can be represented as follows y equals k to the power of alpha l to the power of 1 minus alpha end exponent c equals c subscript 0 plus b left parenthesis y minus t right parenthesis i equals i subscript 0 minus d r suppose that taxes increase. what happens to the equilibrium level of output?
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Use the neoclassical theory of distribution to pre- dict the impact on the real wage and the real re...
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