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soldier1979 [14.2K]
1 year ago
8

Consider an economy described by the combined solow and romer model. if this economy is on its balanced growth path when an exog

enous permanent increase in the depreciation rate occurs:________
Business
1 answer:
astraxan [27]1 year ago
6 0

This economy is on its balanced growth path when an exogenous permanent increase in the depreciation rate occurs, there will be an immediate growth effect.

Recall that population growth in the Solow model does not contribute to per capita income growth, which depends solely on the growth of (exogenous) technology. in Romer's model, population growth could be the source of her per capita income growth.

In the short run, increased savings and investment boost national income and output growth. Solow analyzes how increased savings and investment affect long-term economic growth. In the short run, higher savings and investment lead to higher national income and output growth in the short run.

The Solow growth model is an exogenous model of economic growth that analyzes changes in an economy's output levels over time as a result of changes in the rate of population growth, savings, and technological progress.

Learn more about The Economy here brainly.com/question/1106682

#SPJ4

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Monetary policy has a​ ________ effect on aggregate demand in​ a(n) ________​ economy, and fiscal policy has a​ ________ effect
Alja [10]

Answer:

Greater; Open; Greater; Closed

Explanation:

Aggregate demand of economy refers to the total demand for goods and services in an economy at particular period of time.

A closed economy refers to one that has no imports or exports; in order words it is closed from foreign trade with other economies. Thus, fiscal policy would have a greater effect in this economy.

Open economy is the opposite of a closed economy; it allows foreign trade and the aggregate demand of the economy is better influenced by the monetary policy.

3 0
3 years ago
TCost-908 Car Mechanic Inc. uses a job-order costing system. The company applies all of its overhead costs to jobs using a prede
oee [108]

Solution :

1.  Predetermined overhead rate

Fixed \text{overhead cost}    (253,000 / 22,000)    =  $ 11.5

Variable \text{overhead cost} per direct labor-hour  = $ 1

Predetermined overhead rate                          = $12.5

2.  Total job cost                  $

   Direct materials               703

  Direct labor cost               317

 Applied overhead (8 hours x $12.5 per direct labor hour)   = 100

 Total job cost                    = $ 1120

3. Charges     = $ 1120 x 140%

                      = $1568

 

8 0
2 years ago
A.
Zina [86]

Lo siento, no lo sé, pero espero que lo encuentres pronto.

5 0
2 years ago
Velocity, a consulting firm, enters into a contract to help Burger Boy, a fast-food restaurant, design a marketing strategy to c
madam [21]

Answer:

a. Accounts Receivable (Dr.) $93,000

Bonus Receivable (Dr.) $2,325

Service Revenue (Cr.) $95,325

b. Service Revenue (Dr.) $9,300

Bonus receivable (Cr.) $9,300

c. Accounts Receivable (Dr.) $93,775

Bonus Receivable (Dr.) $775

Service Revenue (Cr.) $93,000

d. Cash (Dr.) $29,000

Bonus Receivable (Cr.) $29,000

Explanation:

The contract between Burger Boy and Velocity is for eight months.

Expected value of the contract on 1st month is :

80% * [ $93,000 * 8 months + $31,000 ] + 20% [ $93,000 * 8 months - $31,000] = $762,600

The expected value per month is $762,600 / 8 months = $95,325 per month

Expected value of the contract 5th month with revised probability is :

60% * [ $93,000 * 8 months + $31,000 ] + 40% [ $93,000 * 8 months - $31,000] = $750,200

The expected value per month is $750,200 / 8 months = $93,775 per month.

5 0
3 years ago
Joe walks into Best Buy prepared to spend no more than $500 cash on a new computer, but the price turns out to be $600. Joe is t
motikmotik

Answer:

Irrational decision

Explanation:

Irrational decisions refer to those decisions which are not taken after enough deliberation, ignore the rationale, facts and logic, are rather decided out of whim and impulse and usually instantly decided.

In the given case, Joe was not willing to pay more than $500 cash yet eventually ended up paying $600. Even if the $25 gift card is considered, he ended up paying $575 which is more than he had decided to pay.

The choice of the consumer here is not rational or rather irrational since, he without considering other alternatives or exercise of judgement, without evaluating his costs, impulsively opted for the credit card lured by $25 gift card.

As per the economic theory, Joe's decision would be referred to as irrational.

8 0
3 years ago
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