Business, 16.02.2021 03:30 cruzhazeL999
Assume that the Puerto Rico economy is initially at the golden-rule level of per capita capital stock. Suppose that Hurricane Maria wiped out 25% of the island’s capital stock and (even more tragically) 10% of the island’s labor force as they migrated to the US. Using the Solow growth model and assuming that the “current'' savings rate, the depreciation rate, the rate of technological progress, and the rate of population growth do not change:
Show the short-run effects on the hurricane on K, k, L, Y and y.
Show the process by which each of these variables, and the economy in general, adjust to a new long-run equilibrium
Compare the growth rates of K, k, L, Y, and y in the original (pre-hurricane) case and the new long-run equilibrium
Explain what monetary policy tools may be of help to jumpstart the economy after the hurricane using the following perspectives of the different schools of economic thought:
i. Classics
ii. Neoclassic
iii. Monetarists
iv. Keynesians
v. Austrian
vi. Real business cycle
Answers: 2
Business, 21.06.2019 19:10
If we know that a firm has a net profit margin of 4.6 %, total asset turnover of 0.62, and a financial leverage multiplier of 1.54, what is its roe? what is the advantage to using the dupont system to calculate roe over the direct calculation of earnings available for common stockholders divided by common stock equity?
Answers: 2
Business, 22.06.2019 01:00
Azster inc. recorded sales revenue for the year that ended december 31, 2014 as $67,000. interest revenue of $5,300 and expenses of $14,000 were also recorded for the same period. what is aster’s net profit or loss?
Answers: 3
Business, 22.06.2019 11:30
Florence invested in a factory requiring. federally-mandated reductions in carbon emissions. how will this impact florence as the factory's owner? a. her factory will be worth less once the upgrades are complete. b. her factory will likely be bought by the epa. c. florence will have to invest a large amount of capital to update the factory for little financial gain. d. florence will have to invest a large amount of capital to update the factory for a large financial gain.
Answers: 1
Business, 22.06.2019 11:30
What would you do as ceo to support the goals of japan airlines during the challenging economics that airlines face?
Answers: 1
Assume that the Puerto Rico economy is initially at the golden-rule level of per capita capital stoc...
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