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kvasek [131]
4 years ago
5

Suppose the growth of production in Country B follows Solow Model. Country B's production function is Y = F(K,L) = K0.5 L0.5 . C

ountry B has 100 people(labors) and 64 units of capital K in Year 1. For Country B, what is the aggregate production in Year 1?
Business
1 answer:
BartSMP [9]4 years ago
3 0

Answer:

80

Explanation:

Given the Solow Formula Y = K^{0.5} *L^{0.5} in the question, we have:

Capital K = 64

Labors L = 100

Substituting the number for K and L into the equation, we have:

Y=64^{0.5} *100^{0.5}

Y = 8 * 10

Y = 80

Please Note:

Country B's production function is Y = F(K,L) = K0.5 L0.5 is not correctly stated as the real Solow Model using equation format in the question. This has therefore been done under the explanation above and now correctly stated as Y = K^{0.5} *L^{0.5} .

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The _____ adds up the market prices of final goods and services to calculate Gross Domestic Product (GDP).
Alex_Xolod [135]

The expenditure approach adds up the market prices of final goods and services to calculate Gross Domestic Product (GDP). The expenditure method is the most widely used method when trying to estimate GDP. GDP stands for Gross Domestic Product which refers to the total value of goods and services that are provided in a country over the period of one year.

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3 years ago
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Create a list of rules to help you collaborate as a team, including expectations about meetings, communication, course work, con
Bumek [7]

Answer:

Ground rules helps a team set a guiding course in achieving their team objectives and goals.

Ground rules helps team members to know what is acceptable and what is frowned at.

<em>Example of grounds rules includes:</em>

<em>Lateness to meeting is unacceptable</em>

<em>Communication must be formal and documented</em>

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Explanation:

Ground rules helps a team set a guiding course in achieving their team objectives and goals.

Ground rules helps team members to know what is acceptable and what is frowned at.

<em>Example of grounds rules includes:</em>

<em>Lateness to meeting is unacceptable</em>

<em>Communication must be formal and documented</em>

<em>Conflict resolution must be done and addressed by the leadership of the team</em>

7 0
4 years ago
Which expense is a bank least likely to extend a line of credit for?
vovangra [49]

A flat screen TV

The other options all <em>create value</em>, while a TV does not.

6 0
3 years ago
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Oriole Corporation has retained earnings of $682,100 at January 1, 2020. Net income during 2020 was $1,558,700, and cash dividen
tigry1 [53]

Answer:

$2,248,660

Explanation:

According to the scenario, computation of the given data are as follows,

Particulars                                                   Amount

Retained Earning                                      $682,100

Correction of repairs expense (Add)       $89,160

Net income (Add)                                      $1,558,700

Dividend Paid (Less)                                 $81,300

Net retained earning                              $2,248,660

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3 years ago
International flows of funds can affect the Fed's monetary policy. For example, suppose that interest rates are trending lower t
Elden [556K]

Answer:

International flows of funds can affect the Fed's monetary policy. For example, suppose that interest rates are trending lower than the Fed desires. If this downward pressure on U.S. interest rates may be offset by <u>outflows</u> of foreign funds, the Fed may not feel compelled to use a <u>tight </u>monetary policy.

Explanation:

A Tight Monetary Policy is when the central bank tightens policy or makes money tight by raising short-term interest rates through policy changes to the discount rate, also known as the federal funds rate. Boosting interest rates increases the cost of borrowing and effectively reduces its attractiveness.

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The reasoning is as follows, the rate is down in the USA so holders of assets look for better rates abroad as a consequence  there is less money in the US domestic economy and automatically the rate tend to rise (remember that interest rate is the price of money). If there is less supply of something the price of that something will go up (ceteris paribus). The same thing will happen to the interest rate without the intervention of the FED.

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