1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
dimaraw [331]
3 years ago
7

1. Assume a closed economy, perfectly elastic labor supply, and linear technol-ogy. Suppose the incremental capital-output ratio

(ICOR) is 3, the depreciation rate is 3%, and the gross savings rate is 10%. Use the Harrod-Domar growth equation to determine the rate of growth. What would the gross savings rate have to be to achieve 5% growth? Assuming a perfectly elastic labor supply, state one criticism of this model from an exogenous growth theory viewpoint.
Business
1 answer:
Vera_Pavlovna [14]3 years ago
8 0

Answer:

<u>Using the Harrod-Domar growth equation</u>

Growth rate = Saving rate / Capital output ratio

Growth rate = 0.01 / 3

Growth rate = 0.003

Growth rate = 0.3%

Thus, the value of growth rate is 0.3%

When the incremental capital-output ratio is 3, to achieve the 5% growth rate, the gross saving rate is 0.24 or 24%

Exogenous growth: When the labor supply is perfectly elastic, then the exogenous does not allow any factor to substitute

Endogenous growth: When the labor supply is perfectly elastic, theem the exogenous does not lead to address the savings decision or sources of productivity growth.

You might be interested in
Deep mines has 14 million shares of common stock outstanding with a beta of 1.15 and a market price of $42 a share. there are 90
Ugo [173]
Check the attached file for the answer.

3 0
3 years ago
Which would be an example of sustainable development? a. Current use of fossil fuels in the U.S. b. Heap-leach extraction of gol
Setler [38]

Answer:

The correct answer is letter "D": Development of brownfields in urban areas.

Explanation:

In urban planning, sustainable development refers to continuous activities that can be performed during extended periods of time. They are the result of repeated patterns of individuals who, sometimes unconsciously, provoke more and more individuals to repeat their actions.

Under such a scenario, <em>the development of brownfields in urban areas is the result of building more department complexes in the cities because of the increasing need for renting and selling houses as a result of the increasing population growth.</em>

5 0
3 years ago
Read 2 more answers
merchandise is sold for cash. the selling price of the merchandise is $2,600, and the sale is subject to a 6% state sales tax. t
love history [14]

The journal entry for the sale would include a credit to sales tax payable for $156 if the selling price of the merchandise is $2600.

The government levies a consumption tax known as a sales tax on the purchase of goods and services. At the point of sale, a standard sales tax is imposed, collected by the retailer, and paid to the government. Companies must first apply for a sales tax permit from their state's department of taxation in order to be able to collect sales tax from customers. Every time a customer makes a purchase, businesses collect sales tax, which they subsequently monthly or quarterly send to the state.

As the selling price of the merchandise is $2,600 and the state sales tax is 6%, this means that 6% of $2,600 has to be paid to the state governing body.

Sales tax = 6% of 2600

Sales tax = 6/100 × 2600

Sales tax = 0.06 × 2600

Sales tax = $156

Therefore; the entry to journalize the sale would include a credit to sales tax payable for $156 if the selling price of the merchandise is $2600.

To know more about  sales tax refer:

brainly.com/question/1811849

#SPJ4

8 0
1 year ago
Fortuna worked 49.5 hours this week at $ 8.18 an hour. What was he gross pay? Remember over time worked over 40 hours is paud at
vova2212 [387]
$327.2 for the first 40
$116.575 for the remaining 9.5 hours paid at 1.5x the pay
$443.765 is your sum, however if you are to round to actual pay, it would be $443.77
6 0
3 years ago
If consumer wealth decreases as the stock market plunges, then (3 points) there is a movement down the AD curve as price level d
tekilochka [14]

Answer:

AD shifts left and price level would decrease.

Explanation:

If consumer wealth decreases due to a plunge in the stock market, the AD curve will shift to the left. This is because shifts to the left of the AD curve represent a reduction in demand, and if consumers are poorer, they will naturally decrease their demand.

This will in turn reduce the price level, because in a market system, prices will fall until they meet the new, lower demand, meaning that a new equilibrium price is reached.

3 0
3 years ago
Other questions:
  • Common accounting anomaly fraud symptoms involve problems with various data and books of accounts. Which of the following is NOT
    10·1 answer
  • Insurance is a transfer of the risk of economic loss from the insured to the insurance company.
    9·1 answer
  • One of the principal causes of unethical behavior in organizations is overly aggressive financial or business objectives.
    7·1 answer
  • Blenman Corporation, based in the United States, arranged a 2-year , $1,000,000 loan to fund a project in Mexico. The loan is de
    10·1 answer
  • Suppose that, in year 1, an economy produces 100 golf balls that sell for $3 each and 75 pizzas that sell for $8 each. The next
    5·1 answer
  • According to the situational leadership theory developed by Hersey and Blanchard, followers’ readiness to be responsible for the
    12·1 answer
  • What is a loan?
    5·1 answer
  • What do you mean by final account? Mention its objectives​
    15·2 answers
  • Log Cabin Homes, Inc., uses a job cost system to account for its jobs, which are prefabricated houses. As of January 1, it’s rec
    11·2 answers
  • ?Charlotte mentions that she believes the company “has a great track record when it comes to equity.” What evidence is she consi
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!