EBK MACROECONOMICS
EBK MACROECONOMICS
7th Edition
ISBN: 9780134738970
Author: O'Brien
Publisher: PEARSON CUSTOM PUB.(CONSIGNMENT)
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Chapter 11, Problem 11.5.5PA

Subpart (a):

To determine

 The meaning of technological catch-up in terms of Bardhan.

Subpart (b):

To determine

The problems that are encountered by China in the process.

Subpart (c):

To determine

 The difference between the economic system of the Chinese communist system and the soviet in the 1980s.

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(d) Calculate the total change in qı. Total change: 007 (sp) S to vlijnsi (e) B₁ is our original budget constraint and B2 is our new budget constraint after the price of good 1 (p1) increased. Decompose the change in qı (that occurred from the increase in p₁) into the income and substitution effects. It is okay to estimate as needed via visual inspection. Add any necessary information to the graph to support your 03 answer. Substitution Effect: Income Effect:
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