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soldier1979 [14.2K]
2 years 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]2 years 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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In January 2012, one US dollar was worth 50 Indian rupees. Suppose that over the next year the value of the Indian rupee decreas
satela [25.4K]

Answer:

59% - a)increase - b)decrease

Explanation:

First of all, we should say that the real exchange rate is calculated by multiplying the nominal exchange rate for the price index and then divide it by the price index of the other country. In another language, using this case as the example, the first nominal exchange rate is 50, as you need 50 rupees to buy 1 dollar. So to calculate the real exchange rate you need to multiply 50 by 100 (the price index of USA) and then divide it by 100 (the price index of India). Note that both price indexes are 100, just a coincidence for making easier the question. Result: 50.

Then we calculate the next real exchange rate: multiply 60 (the new nominal exchange rate) by 106 (the new US price index) and divide by 80 (the new India price index). This throws a result of 79,5. We see a 29,5 increase, and 29,5 represents 59% of 50 (the initial real exchange rate).

Then both questions is more common sense than the reading of the results we just calculated. For example, nominal exchange rate changed from 50 to 60, so the people in India will now have to collect 10 more rupees to buy the same dollar. Let's suppose a pair of shoes in USA costs 40 dollars. Before, Indians needed 2000 rupees to buy it. Now they will need 2400 rupees... it will be more expensive. Plus, the prices of USA had gone up 6%, which means the pair of shoes will now cost 42,4 dollars... even more expensive! As products in USA are more expensive, we can expect that India's consumption of American goods will decrease (law of demand).

With the American consumption of Indian goods happens the opposite, the goods in India became cheaper (price index has fallen), and for the Americans, the same dollars they had will buy more rupees when the exchange rate changed to 60.

3 0
3 years ago
The Work Breakdown Structure (WBS) is normally developed by listing deliverables - major deliverables first and then progressive
AURORKA [14]

Answer:

The correct answer is True.

Explanation:

The steps to follow to create a work breakdown structure are as follows:

1. Organize a meeting and share with the main stakeholders: team members are one of the most valuable assets in the process of creating the work breakdown structure. They have the knowledge, experience and creativity necessary to define each deliverable reaching the most specific details.

2. Complete the definition of all project deliverables: it is about going one step beyond the level reached in the planning and 100% complete the information on all project deliverables, including internal and external, associating each one with its estimated completion time.

3. Break down each deliverable into smaller, more manageable parts: it is about achieving a realistic level of work planning by the project manager, which ensures that, without interfering with the total estimated project deadline and the overall plan, it can be completed by the work teams. It is about determining work packages. These units constitute the lowest level of the EDT and are pieces of work that are specifically assigned to a person or a team of people to be completed, under the supervision of the Project Director. It is recommended that they focus on a single point of responsibility. The work packages will be used later to define the activities and tasks in which the project is divided.

4. Review the results obtained: with the stakeholders, both at the time of finalizing the elaboration of the work breakdown structure, and when modifications or updates are included, if applicable. It is essential to avoid overlaps.

7 0
3 years ago
The adjusted trial balance for Rowdy Profits Corporation reports that its equipment had cost $240,000. For the current year, the
garik1379 [7]

Explanation:

The reporting is shown below:

                                        Income statement

Particulars                  Amount                   Particulars                  Amount          

Depreciation

expense                      $28,800

                                            Balance sheet

Liabilities                    Amount        Assets                     Amount

                                                 Equipment                     $240,000

                                                Less: Accumulated

                                               Depreciation                  -$144,000

                                          Net value of an equipment $96,000

Only these items would be displayed on the income statement and the balance sheet

6 0
3 years ago
Which type of tutoring does the school normally offer
IRINA_888 [86]
All of the above. Firstly, some students may not have the right learning environment to be able to learn in the area they live in so, school help provide a better environment to learn. Secondly, online tutoring as someone may be severely ill or just cannot attend for whatever the reason and with government standards children should have an education. Lastly, supplemental instruction as some student have more of a difficult subject that they tend to struggle with nd so school provides interactions for student to engage and get different ideas and views on certain topics.

Hope this helps and you get you marks ☺️
6 0
3 years ago
If the ratio of currency to deposits (cr) increases, while the ratio of reserves to deposits (rr) is constant and the monetary b
blagie [28]

Answer:

C. the money supply decreases.

8 0
3 years ago
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