Answer:
Answer for the question:
Consider a two-period model of a small open economy with a single good each period. Let preferences of the representative household be described by the utility functionln(C1) + ln(C2),where C1 and C2 denote consumption in periods 1 and 2, respectively, and ln denotes the natural logarithm. In period 1, the household receives an endowment of Q1 = 5. In period 2, the household receives profits, denoted by ?2, from the firms it owns. Households and firms have access to financial markets where they can borrow or lend at the interest rate r1. (r1 is the interest rate on assets held between periods 1 and 2.).Representative firm borrows D1f in period 1 to make investment I1 that enable the firm to produce goods in period 2. The production technology in period 2 is given byQ2 = ?(I1),where Q2 and I1 denote, respectively, output in period 2 and investment in period 1.Assume that there exists free international capital mobility and that the world interest rate, r*, is 10% per period (i.e., r* = 0.1). Finally, assume that the economy’s initial net foreign asset position is zero (B0* = 0)c) Find the country’s net foreign asset position at the end of period 1, the trade balance in periods 1 and 2, and the current account in periods 1 and 2.d) Now consider an investment surge. Specifically, assume that as a result of a technological improvement, the production technology becomes Q2 = 2?(I1). Find the profit maximizing level of investment made in period-1 and the level of profit for period-2. Find the equilibrium levels of saving, the trade balance, the current account, and the country’s net foreign asset position in period 1.
Is given in the attachment.
Explanation:
Answer:
E. Faced with a negative population growth rate, the country relaxed immigration control norms 25 years ago.
Explanation:
Given that<u> immigrants increase the population</u> and that they may come from a less healthy environment, having a less healthy background is very common for them. Even if the domestic population had a high average height, t<u>he mean value will surely decrease</u> to the lower height of the immigrants.
Therefore, a correlation between economic growth and average health measured by height can be undermined, given E) is true.
Answer:
The answer is given below
Explanation:
Depreciable cost at 31 December 2021 (2,848,000-2,004,000)
Depreciable Cost $844,000
Less: Residual value ($232,000)
Written down value as at January 1 ,2021 612,000
Depreciation per year as per straight line method (612,000/3) $204,000
Depreciation expense Dr.$204,000
Accumulated Depreciation Cr.$204,000
The change in depreciation method is change in estimate which is always accounted for prospectively.Therefore the written down value as at January 2021 will be depreciation over remaining useful life of the asset which is 3 years
Answer:
Explanation:
On July 1, 2019, Cullumber Company pays $12,000 to Kalter Insurance Co. for a 3-year insurance contract.
For Cullumber Company:
July 1 Debit:Prepaid Insur $12000
Credit: Bank. $12,000
Being payment for prepaid Insurance.
Dec 31. Credit:prepaid insur $2,000
Debit:Insurance exp $2,000
Being insurance expenses for the year.
For Blossom Company:
July 1 Credit:Unearned Revenue $12000
Debit: Bank. $12,000
Being unearned revenue on Insurance.
Dec 31. Debit:unearned revenue $2,000
Credit: Revenue $2,000
Being insurance revenue for the year.
Answer:
9.09% and 5.263%
Explanation:
The computation is shown below:
a. The current rate of unemployment is
= Number of Unemployed people ÷ labor force
= 10 ÷ 110
= 9.09%
b. The natural rate of unemployment is
= Separation rate ÷ Separation rate + finding rate
= 0.01 ÷ 0.01 + 0.18
= 0.01 ÷ 0.19
= 5.263%
These both should be expressed in a percentage forms
