Consider a closed economy in which the population grows at the rate of 1% per year. The per-worker production function is y = 6 * ((K)^0.5), where y is output per worker and k is capital per worker. The depreciation rate of capital d is 14% per year.
a. Households consume 90% of income and save the remaining 10% of income. There is no government. What are the steady-state values of capital per worker, output per worker, consumption per worker, and investment per worker?
b. Suppose that the country wants to increase its steady state value of output per worker. What steady-state value of the capital-labor ratio is needed to double the steady-state value of output per capita? What fraction of income would households have to save to achieve a steady-state level of output per worker that is twice as high as in part (a)?
In: Economics
In: Math
N atoms of an ideal gas are contained in a cylinder with insulating (adiabatic) walls, closed at one end by a piston.The initial volume is Vi and the initial temperature is Ti . Find the change in temperature, pressure and entropy that would occur if the volume were suddenly increased to Vf by withdrawing the piston (Vf > Vi).
In: Chemistry
Consider the following IS-LM model in a closed economy:
C = 335 + 0.3YD
I = 130 + 0.15Y − 850i
G = 350
T = 245
i = 0.04
M/P = 3.6Y − 9,250i
a. Suppose Government increased the taxes. Show the impact of this policy on IS-LM graph in Short-Run. Be explicit about the assumptions you make (which variables do not change in IS-LM relation in Short Run, which ones increase/decrease). You do not need to show exact numbers on graph, symbols are enough
b. Suppose now we are in Medium Run and the Central Bank applies an ’expansionary monetary policy’. Show the impact of this policy on IS-LM graph (not money supply money demand graph). Explain which variables in the model does not change/increases/ decreases. Explain the steps leading to these consequences. You do not need to show exact numbers on graph, symbols are enough
In: Economics
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In: Advanced Math
The following table contains data for a hypothetical closed economy that uses the dollar as its currency.
Suppose GDP in this country is $320 million. Enter the amount for government purchases.
| National Income Account | Value |
|---|---|
| (Millions of dollars) | |
| Government Purchases (GG) | |
| Taxes minus Transfer Payments (TT) | 110 |
| Consumption (CC) | 150 |
| Investment (II) | 70 |
Complete the following table by using national income accounting identities to calculate national saving. In your calculations, use data from the preceding table.
| National Saving (S)National Saving (S) | = = | |
| = = | ||
| million |
Complete the following table by using national income accounting identities to calculate private and public saving. In your calculations, use data from the initial table.
| Private SavingPrivate Saving | = = | |
| = = | million |
| Public SavingPublic Saving | = = | |
| = = | million |
Based on your calculations, the government is running a budget .
In: Economics
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5. Saving and net flows of capital and goods In a closed economy, saving and investment must be equal, but this is not the case in an open economy. In the following problem, you will explore how saving and investment are connected to the international flow of capital and goods in an economy. Before delving into the relationship between these various components of an economy, you will be asked to recall some relationships between aggregate variables that will be useful in your analysis. Recall the components that make up GDP. National income (YY) equals total expenditure on the economy's output of goods and services. Thus, where CC = consumption, II = investment, GG = government purchases, XX = exports, MM = imports, and NXNX = net exports:
Also, national saving is the income of the nation that is left after paying for . Therefore, national saving (SS) is defined as:
Rearranging the previous equation and solving for YY yields YY = . Plugging this into the original equation showing the various components of GDP results in the following relationship:
This is equivalent to SS = , since net exports must equal net capital outflow (NCONCO, also known as net foreign investment). Now suppose that a country is experiencing a trade surplus. Determine the relationships between the entries in the following table, and enter these relationships using the following symbols: > (greater than), < (less than), or = (equal to).
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In: Economics
Consider the following data for a closed economy:
Y = $12 trillion C = $ 8 trillion G = $ 2 trillion Public Saving = -$0.50 trillion
Use the data to calculate the following.
a) Net Taxes (T)
b) Private Saving
c) Investment
d) Government budget surplus or deficit
In: Economics
This question relates to standing waves.
A) Does a closed pipe have a higher or lower fundamental frequency than an open pipe of the same length?
B) If the length of an open tube is 0.8 m, experimentally find the: fundamental frequency and the frequencies of the third and fifth harmonic.
C) We have only addressed the variables of length, wave speed, harmonic number and frequency. These seem to be adequate to fully describe the frequency of a standing wave. But we know that when a musician tightens a guitar string, the frequency of the sound changes. Which of these independent variables changes value when a string is tightened?
In: Physics
A mass of m=1kg of steam is contained in a closed rigid container. Initially the pressure and temperature of the steam are: p1= 1.5 MPa and t1=240?C, respectively. Then the temperature drops to T2 =100?C as the result of heat transfer to the surroundings. Determine: a) quality of the steam at the end of the process, b) percentage of volume that is occupied by the saturated liquid at the final state, c) heat transfer with the surroundings per unit mass of the system. For: p=1.5 MPa and T1=240?C: h1=2900KJ/kg, v1=0.1483 m3/kg while for T2=100?C: h’=419KJ/kg, v’=0.001043m3/kg and h”=2676 KJ/kg ,v”=1.672 m3/kg.
In: Mechanical Engineering