Micro Economics / Macro Economics Spokane Falls Commnity College SFCC Econ 201/202
Micro Economics / Macro Economics Spokane Falls Commnity College SFCC Econ 201/202
20th Edition
ISBN: 9781308227511
Author: McConnell Brue Flynn
Publisher: McGraw Hill
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Chapter 23, Problem 3DQ
To determine

Lifetime earnings gain from migration.

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On the 1st of April 2018, the South African National Treasury increase the value-added tax rate from 14% to 15%. This policy change had a wide-ranging impact on society. Discuss some of the benefits and drawbacks of making use of this type of tax to generate government revenue and what we may expect in terms of its impact on inflation and GDP growth within the economy.
5. We learnt the following equation in the class: Ak = sy - (n + 8)k where y = ko. Now, I transform this equation into: Ak/k = sy/k - (n + 8). I want you to use a diagram to show the steady state solution of this equation (In the diagram, there will be two curves - one represents sy/k and one represents (n + 8). In the steady state, of course, Ak/k = 0). In this diagram, the x-axis is k. What will happen to this diagram if the value of n increases?
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