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zhuklara [117]
3 years ago
13

If a war destroys a large portion of a country's capital stock but the saving rate is unchanged, the Solow model predicts that o

utput will grow and that the new steady-state will approach:
A) a higher level of output per person than before.
B) the same level of output per person as before.
C) a lower level of output per person than before.
D) the Golden Rule level of output per person.
Business
1 answer:
Ksenya-84 [330]3 years ago
6 0

Answer:

B) the same level of output per person as before.

Explanation:

In the Solow growth model, the economy reaches a steady state level of capital regardless of the starting level of capital. This steady state occurs when capital per worker is constant. Therefore after the war, the level of output should return to its normal level since the savings rate is constant and hasn't changed. This model assumes that a constant fraction of capital will always wear out, increasing the capital-labor ratio, therefore the population must grow or new technologies must be introduced to reach the steady state.

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aleksklad [387]

Answer:

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Explanation:

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6 0
3 years ago
Read 2 more answers
You just sold 300 shares of stock at a price of $42.06 a share. You purchased the stock for $39.80 a share and have received tot
Alex Ar [27]

Answer:

$678

Explanation:

Given that,

Number of shares sold = 300

Selling price of each share = $42.06

Cost of purchasing shares = $39.80 per share

Total dividend received = $1,272

We can easily determine the total capital gain on this investment by comparing the sales value and purchase value of this stock.

Total capital gain on this investment:

= Sales value - Purchase value

= (Number of units × Selling price per unit) - (Number of units × cost of purchasing per share)

= (300 × $42.06) - (300 × $39.80)

= $12,618 - $11,940

= $678

3 0
4 years ago
On January 1, 2017, Sheridan Company had a balance of $417,000 of goodwill on its balance sheet that resulted from the purchase
Thepotemich [5.8K]

Answer:

patent      301,350 debit

       cash                 301,350 credit

franchise 633,600 debit

        cash               633,600 credit

development expense   189,000 debit

         cash                                    189,000 credit

year-end adjustment:

amortization expense   50,225 debit

         patent                                  50,225 credit

amortization expense   31,680‬ debit

         patent                                  31,680‬ credit

Explanation:

The patent and franchise will be activate as there is a certain possibility to produce positive cashflow in the future.

They will be adjusted at year-end for amortization:

301,350 / 6 = 50,225 amortization on patent

633,600 / 10 = 63,360 amortization on franchise

As it was concede on July 1st then, we will do half-year

63,360 / 2 = 31,680‬

The development cost will be treated as expense as there is no precise information that can determined the development cost which yield a positive outcome.

8 0
4 years ago
Something you enjoy or want to know more about is a(n) _____.
gtnhenbr [62]
The answer is B. Interest
3 0
3 years ago
Read 2 more answers
To maximize utility, a consumer should allocate money income so that the Multiple ChoiceA) elasticity of demand on all products
ikadub [295]

Answer:

D) Marginal utility of the last unit of each product consumed is the same.

Explanation:

To maximize utility with a given income constraint, a consumer must chose products to maximize utility. This can be done so that each extra dollar, which is the marginal income, spent on each of these products yields the equal marginal utility. For example if one product yields more marginal utility per marginal dollar spent, the consumer should reallocate their income so they consume more of this product and less of others, so much so that the utility derived from this product equals utility derived from other products.

Utility is maximized when these marginal utilities per marginal dollar spent coincide.

Hope that helps.

6 0
3 years ago
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