2 5 real interest rate 3 2 0 3 + S3 5 Loanable funds S1 D1 Refer to the figure above. If the economy starts at point 0, how would you illustrate the effect of a positive technological shock that increases returns to investment in high-tech industries, by moving to point: S2 D2

2 5 real interest rate 3 2 0 3 + S3 5 Loanable funds S1 D1 Refer to the figure above. If the economy starts at point 0, how would you illustrate the effect of a positive technological shock that increases returns to investment in high-tech industries, by moving to point: S2 D2

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter17: Production And Growth

Section: Chapter Questions

Problem 5CQQ

See similar textbooks

Related questions

Q: Discuss the impact of the economy on consumer behaviour. Note: it is important that you consider…

A: Recession: In financial matters, a downturn is a business cycle compression when there is an overall…

Q: Assume that the production function for a country is given by = √K and annual investment is given by…

A: A production function is an economic concept that describes the relationship between inputs and…

Q: The below five graphs show the development of key macroeconomic variables over the scope of three…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: In developed countries the phenomenon of population aging is happening because of longer life…

A: Since you have posted multiple questions , I will answer the first one for you . The life-cycle…

Q: Suppose that the annual rates of growth of real GDP in Econoland over a five-year period were as…

A: Average = (Sum of observation / Number of observation) A negative growth rate implies recession.

Q: An increase in the initial stock of knowledge: Suppose we have two economies—let’s call them Earth…

Q: Suppose that the annual rates of growth of real GDP in Econoland over a five-year period were as…

A: The real economic growth rate is a percentage-based measure of economic growth that accounts for…

Q: 11. What are the two topics Macroeconomics is mainly concerned? (See the intro. to ch.6)…

A: Macroeconomics is the study of the economy as a whole.It is also concerned with unemployment,…

Q: Y FK = F(K.N) 0,FN>0, FKK-FNN 0 FN (K, N) N" (w/p), N'>0 N* N' => N = I = I(r-n), I' 0 C+I+G+6K Y…

A: - Nominal Money Supply: Nominal money supply refers to the total amount of money circulating in an…

Q: Hey! Need help with the following Macroeconomics question, it contains four small sub-questions.…

A: The study of how economies function, such as changes in economic production, inflation, interest and…

Q: The production function for an economy can be expressed as Y= F(K,L), where Y is real GDP, K is the…

A: Given, Y = F(K,L)

Q: How many recessions did the US economy experience between 1929 and 2020? What were the four longest…

A: A phase of the business cycle in which a significant and widespread decline in economic activity is…

Q: What was the average of these growth rates in Econoland over these five years? Instructions: Round…

A: The real economic growth rate is a percentage that shows the rate of change in a country's GDP, from…

Q: Recently, the rate paid by banks on savings accounts was 0.1 percent. However, at the same time,…

A: The Fisher equation is an economic formula that relates the nominal interest rate, the real interest…

Q: With lockdowns currently imposed across Europe and North America until mid-April, even in the…

A: A curve that shows the relationship between the price level and real GDP that would be supplied if…

Q: ADVANCED ANALYSIS A firm faces the following costs: total cost of capital = $1,000; price paid for…

A: The firms in the industry are liable to estimate their costs and the benefits for production…

Q: Explain briefly what will happen to the performance of companies in the light of fears that the…

A: A recession is an extended period of economic decline, where there is a notable reduction in…

Q: What is short-term momentum? What are long-term reversals?

A: The term ‘momentum’ indicates the speed or velocity of a factor. In stock market, the momentum…

Q: The following abstract appeared in gultnews.com on January 14th, 2019. "The UAE is forecast to…

A: National income refers to the final value associated with each good or service produced in the…

Q: In the graph of Figure I, the annual growth rate of the GDP of the United States economy is…

A: The consumption function shows the relationship between real GDP and consumption levels. The…

Q: 12. Suppose an economy represented by the graph below started with K = 25, so it was in a steady…

A: Suppose an economy represented by the graph below started with K = 25 ,so it was in a steady state…

Q: Economics 1B Jan22 Y1 S2 "TOKYO, Aug. 17 (Xinhua) -- Although Japan's economic growth turned…

A: C. Certain transactions that take place in the Japanese economy are not recorded. Explanation: The…

Q: Since 1980, aggregate per capita GDP in sub-Saharan Africa has declined at almost 1 percent per…

A: A country's economic output is broken down by its per-capita gross domestic product (GDP), which is…

Q: Assume a closed economy, perfectly elastic labor supply, and linear technology. Suppose the…

A: The Harrod-Domar model is a Keynesian economic growth model. In development economics, it is used to…

Q: Using the law of motion for physical capital accumulation (K), what is the amount of capital for…

A: Since you have asked a question with multiple sub-parts, we will solve the first three sub-parts for…

Q: Ecuador's economy has a production function that is as follows: Y = K2/5L3/5 The men in Ecuador…

A: Capital per worker and output per worker are positively related. An increase in capital per worker…

Q: (2) While the originating place of Covid-19 was China, why do you think Western countries have…

A: Recession: It is a macroeconomic term that alludes to a critical decrease in everyday monetary…

Question

O
2
5
real interest rate
Refer to the figure above. If the economy starts at point 0, how would you illustrate the effect of a positive technological shock
that increases returns to investment in high-tech industries, by moving to point:
3
S2
S3 S1
3
2
*
5
D1 D2
Loanable funds

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction

VIEW

Step 2: Explanation

VIEW

Solution

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Explain briefly what will happen to the performance of companies in the light of fears that the global economymight get into a recession
(1)The following macroeconomic model describes the economy of CSILAND. Y = C +1+ G + NX.... C = 220 + 0.60 Y.... | = 1000 - 200OR... G = . NX = 525 - 0.10Y - 500R... . (1) .(2) .(3) ..(4) (5) %3D %3D %3D Go....... %3D %3D (a)Write the expression for equilibrium real output, Y. (b)Suppose real interest is 10% and government spending is 1200, determine the value of equilibrium real output. (c)For this economy, find the level of consumption (C), investment (I), and net export (NX). (d)ls there evidence of a twin deficit in CSILAND given that tax revenue is 15% of aggregate real output? Explain.
QUESTION 41 A C LRAS LRAS _LRAS 大大大 40 50 20 30 40 50 20 30 real GDP = Q 20 30 real GDP = Q real GDP = Q 60 50 40 30 20 10 P level 0 10 -AS- AD + 40 50 60 50 40 30 20 10 P level 0- 41. Which of the figures above illustrates an economy in long-run equilibrium? O a) Figure A b) Figure B c) Figure C o 10 B AS AD 60 50 40 30 20 10 P level 0 10 -AS AD
Please explain to me how to solve this problem. Try to be as specific as possible. Thanks. It is a Macroeconomics II problem.
3 Jlgw ?Provide 2 situations why diminishing return could happen in Alba
Answer neatly
2. Consider Kadokawa.inc, a merchandising company in japan producing keychain with a flat rate of 3$ per keychain. Number Number of MPL TR MRPL keychains produced per day of Workers 1 30 2 80 3 110 4 135 ... .. 5 20 170 7 30 ..... ..... ..... 8. 15 а. Fill in all the blanks in the table above b. Verify that MRPL for this firm can be calculated in two ways: (1) change in TR from an additional worker and (2) MPL times the price of output
Suppose that A Explain the reasons that might lead to an increase in A and show graphically the short and long-run impact of such a change. Make sure to clearly explain your reasoning.
how can a firm mantain a smooth production schedule even when sales are fluctuating? what are the benefits of a smooth production schedule? what are the costs?
v Question Completion Status: A Moving to another question will save this response. Quèstion 4 Assume the economy's consumption and saving schedules simultaneously shift downward. This must be the result of: O A. The expectation of a recession O B. An increase in household wealth. O C. An increase in personal taxes. O D. An increase in disposable income. Moving to another question will save this response. SHARP AQUOS
Explain it correctly
From the diagram below we can see that: B 51.5 50 Julia's IC 0- 4950 Consumption now ($) Select one or more: O a. Julia would give up more than one unit of current consumption to get one additional unit of future consumption. O b. The marginal rate of transformation of future into current consumption is 1.5. c. Julia is indifferent between points A and B. O d. Julia values an additional unit of consumption now more highly than an additional unit of consumption later. Consumption later ($)