Consider the impacts on long-run growth from a reduction in the
savings rate. Provide a graph...
Consider the impacts on long-run growth from a reduction in the
savings rate. Provide a graph that clearly illustrates the effects
along with a brief discussion. Be sure to mention the effects on
the long-run growth rate.
a) Explain how and why an increase in the level of savings
affects the long-run growth of real income. b) Explain the role of
diminishing returns, and what this implies for relative growth
rates across countries. c) Carefully describe and explain one
government policy that could increase the long-run growth of real
income.
NO HANDWRITING PLEASE! Please provide the explanations and
graphs in text/word formate. Thanks in advance.....
If
the fed reduced the growth rate of the money supply to the long run
growth rate of output immediately and people believed that it would
persist, what would the immediate impact be? Explain whether each
variable rises, falls or not change and why.
A. Expected inflation
B. The nominal interest rate
C. The real interest rate
The Long Run Economy
a) An economy has a savings rate of s = 0.2 and
capital depreciates at a rate of δ=0.1. Output is produced using
the production function:
?(?) = ?√(?)(?),
Where Y(t) is GDP, K(t) is the capital stock, L(t) is the number
of workers. TFP A has the value of A=2. Assume that the working
population is constant in size.
a) What will GDP per capita in the economy be in the long run
(steady state)?...
1. In the Solow growth model, the
rate of economic growth in the long run depends
on
a. the rate of progress of the
“effectiveness” of inputs or the growth rate of total
factor productivity
b. the population growth
rate
c. the savings rate
d. the level of education of the
population
2. The rate of economic growth of
output per worker in the US between 1800 and
2011
a. depended mostly on changes in TFP
(total factor productivity)
b....
Clearly define the (long run) growth rate (g) that is used in
the fixed growth period of a discounted cash flow model and the
discuss the factors that determine a realistic value for it in any
share valuation.
Clearly define the (long run) growth rate (g) that is used in
the fixed growth period of a discounted cash flow model and the
discuss the factors that determine a realistic value for it in any
share valuation.
The long-run response to an increase in the growth rate of the
money supply is shown by shifting a. the short-run and long-run
Phillips curves left. b. the short-run and long-run Phillips curves
right. c. only the short-run Phillips curve left. d. only the
short-run Phillips curve right.
Describe the long-run relationship between money growth and
inflation. How does the long-run growth of income affect this
relationship? Use the Fisher equation to describe the long-run
relationship between money growth and nominal interest rates.