Principles of Economics (12th Edition)
12th Edition
ISBN: 9780134078779
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: PEARSON
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Question
Chapter 26, Problem 5.2P
To determine
Difference between actual physical capacity of existing plants and potential
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Students have asked these similar questions
Which three factors could have caused this change in potential real GDP? Assume this is a typical economy relying on inputs
such as coal and oil. All items should be placed as either a contributing factor or not a contributing factor.
Contributing factors
discovery of a large source of rare metals
used in manufacturing
an improvement in technology
coal price decrease
Answer Bank
Not contributing factors
oil price increase
riots and political instability
increased consumer confidence
a major bird flu pandemic
an increase in exports
Please provide answer in 1 hr
An economy is described by the following
equations:
Supply:
Y=F(K,L)=6K^0.6L^0.4
K=405, L=110
Demand:
C=231+0.8(Y-T)
|=1161.0-129r
G=150,T=120
NX=125-490e
r=r*= 5
A. What Is the level of GDP in this economy?
B. How much are household savings?
C. How much Is the government saving?
D. How much is National Saving?
E. How much is investment spending?
F. Net capital outflow is:
G. Equilibrium exchange rate is :
Suppose G drops to 142, Find:
H. National Saving
I. Investment
J. New trade balance
K. New Equilibrium exchange rate
Chapter 26 Solutions
Principles of Economics (12th Edition)
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