Question

1. Economic Growth a. Use a stylized graph to draw an aggregate production function (APF). (2...

1. Economic Growth

a. Use a stylized graph to draw an aggregate production function (APF).

b. Using a new stylized graph for each example show how the following would change the APF.

1. A decrease in the labour force participation rate (1 mark)

2. An increase in the capital stock of a country (1 mark)

3. A natural disaster that damaged critical infrastructure (1 mark)

c. Using a stylized graph, draw the labour market in equilibrium.

d. How will an increase in the capital stock, change the labour market equilibrium?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Based on Hecksher Olin Theory: A). Draw and explain in a graph the free trade equilibrium...
Based on Hecksher Olin Theory: A). Draw and explain in a graph the free trade equilibrium for Home Country (Remember PPFs? ! Make sure to clearly indicate the production point, the consumption point, and the quantity of exports and imports). B). In the graph drawn above for question (a), show the effects of a proportional increase in the endowments of labor and capital. Does welfare increase or decrease? C). One of the justifications for import-substitution strategies is the deterioration of...
A6-9. Suppose the aggregate production function for an economy is given by Y* = (T+H)K1/2L1/2, where...
A6-9. Suppose the aggregate production function for an economy is given by Y* = (T+H)K1/2L1/2, where Y* is potential GDP, T is the average level of technology, H is the average level of human capital, K is the capital stock and L is the labour force. Assume initially that both T and H equal 5, and that both K and L equal 64. Assume that the population grows at the same rate as any growth in the labour force so...
1. Draw an aggregate demand and aggregate supply curve on the graph. 2. What do we...
1. Draw an aggregate demand and aggregate supply curve on the graph. 2. What do we see at the macro equilibrium? 3. Assuming that we are all at full employment equilibrium, suggest a disturbance that would move us away from the full employment equilibrium? Show this disturbance graphically. 4. If we are at an unemployment equilibrium, what policy might you use to bring us to full employment? Explain and show graphically.
2. Productivity, growth, and the per-worker production function Suppose you were in charge of establishing economic...
2. Productivity, growth, and the per-worker production function Suppose you were in charge of establishing economic policy for a small island country whose only industry is weaving. When people aren't weaving, they're enjoying leisure time with their families. Which of the following policies would lead to greater economic growth? Check all that apply. Subsidizing research and development into new weaving technologies Imposing a tax on looms (a form of capital) Offering free public education to increase the human capital of...
The best definition for economic growth is a sustained expansion of production possibilities measured as the...
The best definition for economic growth is a sustained expansion of production possibilities measured as the increase in real GDP over a given period. a sustained expansion of production possibilities measured as the increase in nominal GDP over a given period. a sustained expansion of consumption goods over a given period. a sustained expansion of production goods over a given period. If a nation's population grows, then growth in real GDP per person will be less than the growth of...
Use the Solow model to solve. Suppose, you are the chief economic advisor to a small...
Use the Solow model to solve. Suppose, you are the chief economic advisor to a small African country with an aggregate per capita production function of  y=2k1/2. Population grows at a rate of 1%. The savings rate is 12%, and the rate of depreciation is 5%. (a) At the steady-state level of output, what is the numerical value of consumption? Identify the amount of consumption in your graph in part a. Show your work. (b) Say that population growth decreases in...
Suppose potential GDP is $5,000 billion. Use the data below to graph the aggregate demand curve....
Suppose potential GDP is $5,000 billion. Use the data below to graph the aggregate demand curve. Inflation (percent) 5 4 3 2 1 Real GDP (billions of dollars) 4800 4900 5000 5100 5200 1.Suppose the current inflation rate is 2 percent. Draw the inflation adjustment line. What is the current value of real GDP? 2.In the long run, what will the inflation rate be if economic policy does not change? Explain how this adjustment takes place.
Suppose Canada’s aggregate production function is given by the following: Y = K^1/3 *(AN)^2/3 Variables are...
Suppose Canada’s aggregate production function is given by the following: Y = K^1/3 *(AN)^2/3 Variables are defined as they were in class. Suppose the savings rate in Canada is 20% (s = 0.2), the depreciation rate is 5% (δ = 0.05), the population growth rate is 2% (gN = 0.02), and the growth rate of technology is 4% (gA = 0.04). a) Solve for the equilibrium level of capital per effective worker ( K/AN ) and output per effective worker...
1. What is the causative relationship between economic growth and economic development? Your answer should be...
1. What is the causative relationship between economic growth and economic development? Your answer should be structured in terms of the general factors necessary for economic growth 2. Using a Lewis labor surplus framework show graphically and explain how an increase in capital-augmenting agricultural (traditional sector) technology affects a country’s ability to achieve self-sustaining growth that is driven by modern sector capital accumulation. 3.  Show graphically and explain how a country’s level of capital augmenting technology affects its output per worker...
1) If the stock market crashes, then aggregate demand increases, which the Fed could offset by...
1) If the stock market crashes, then aggregate demand increases, which the Fed could offset by increasing the money supply. aggregate demand increases, which the Fed could offset by decreasing the money supply. aggregate demand decreases, which the Fed could offset by increasing the money supply. aggregate demand decreases, which the Fed could offset by decreasing the money supply. 2) In order to avoid entering a recession, the government of Batavia spent $300 billion improving infrastructure around the country. Assuming...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT