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3 years ago

An important difference between the gdp deflator and the consumer price index is that

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<span>GDP stands for Gross Domestic Product and it reflects all goods and services produced within the country. CPI stands for Consumer Consumer Price Index and it reflects the prices of a representative basket of goods and services purchased by the consumers.</span>

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Suppose labor's share of output is 60% and capital's share of output is 40%. If labor grows at a rate of 5%, then this will caus

12345 [234]

If capital grows at a rate of 5%, then this will cause output to grow at a rate of 1%.

Given,

Labor's share of output = 60%

Capital's share of output = 40%

Labor grows on a rate of = 5%

Capital grows on a rate of = 5%

Thus, output will grow at a rate of = ?

SR(t) = Δy/Δt/Y - (αΔk/Δt/k(t) + (1-α)(ΔL/Δt/L(t))

Here, α = 60%

So, labor's share = (1 - 0.6) × 5 = 2%

Capitals contribution = 0.4 × 5 = 2%

Implied rate of growth in technology is also given,

SR = (5) - (2+2)

= 1%

Hence, if capital grows at a rate of 5%, then this will cause output to grow at a rate of 1%.

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8 0

1 year ago

You deposit $300 in a bank account that earns 4ompound interest annually. what is the value of your $300 in 10 years?

Sunny_sXe [5.5K]

You deposit $300 in a bank account that earns 4% compound interest annually. $444 is the value of your $300 in 10 years.

Compound interest happens whilst interest gets added to the primary amount invested or borrowed, after which the hobby rate applies to the new (large) principal. it's essential interest in the hobby, which over the years ended in the exponential boom.

Compound interest is while you upload the earned hobby lower back into your important stability, which then earns you even extra interest, compounding your returns. shall we say you have got $1,000 in a savings account that earns 5% in annual interest. In 12 months, you would earn $50, giving you a brand new balance of $1,050.

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5 0

1 year ago

What is john locke’s view of human nature?

skelet666 [1.2K]

That it aloud people to be selfish

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3 years ago

The amount that consumers are willing to pay for the quota limit quantity is the:_________

OLga [1]

The amount that consumers are willing to pay for the quota-limited quantity is the demand price. The policy of reducing quantity is known as a quota, a restriction imposed by the government on the number of goods bought and sold.

To examine the impact of this quota on individual stakeholders and on the market as a whole, we can calculate the evolution of consumer surplus, producer surplus, and market surplus. Before, the market surplus has not been described before, as this process should take place frequently. Make sure you understand how to find the following values:

Consumer surplus = $3.47 million

Producer surplus = $5.75 million

Market surplus = $8.5 million

After, the post-policy market surplus can be calculated by:

Consumer surplus = $1.2 million

Producer surplus = $5.9 million

Market surplus = $7.1 million

When comparing the market surplus first and the market surplus afterward, note that the impact of a quota is similar to that of a price floor. The key difference is that the government imposes a quantity restriction and the price changes as a by-product, whereas with price restrictions the government imposes a price restriction and the quota quantity changes as a product.

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6 0

1 year ago

the accompanying diagram depict's alex's demand for shoes. a. if shoes cost $50 a pair, how many pairs of shoes will alex buy?

luda_lava [24]

If shoes cost $50 a pair, the number of shoes she would buy is 5.

<h3>How many shoes will she buy?</h3>

The image shown is a demand curve. A demand curve shows the relationship between price and quantity demanded. Price is on the y-axis and quantity demanded is on the x-axis.

In order to determine the quantity demanded, trace $50 to the curve and trace it down to the x axis.

Please find attached the diagram used in answering this question. To learn more about the demand curve, please check: brainly.com/question/25140811

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6 0

2 years ago