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ehidna [41]
3 years ago
15

In the Solow growth model without population growth or technological progress, if investment is greater than depreciation, the c

apital stock will ____ and output will ____ as the economy converges to the steady state.
Business
2 answers:
Nat2105 [25]3 years ago
8 0

Answer:

Increase, increase

Explanation:

The correct answers to the blanks are;

First blank : Increase

Second blank : Increase

The Solow Growth Model is a model used in economics to measure the development in economy considering the changes in the level of output over time as a consequence of changes in the population. It also takes account the investment in economy and then the depreciation involved

This model was presented by Robert Solow an Amercian economist

SOVA2 [1]3 years ago
8 0

Answer:

In the Solow growth model without population growth or technological progress, if investment is greater than depreciation, the capital stock will <u>increase</u> and output will <u>increase</u> as the economy converges to the steady state.

Explanation:

A steady-state happens when there is efficient use of natural resources and fair distribution of the wealth generated from the development of the nations resources.

In Solow model states that economic growth is the result of three factors: labor, capital, and technology and the equilibrium growth path is a steady state in which “level variables” such as Investment and Output grow at constant rates and the ratios among key variables are stable.

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kykrilka [37]

Answer:

a- Red Hot is less efficient than Maverick Cycles in producing goods.

Explanation:

Given data

The Red Hot's Cost of goods sold/Revenue = 63.4%

And, the Cost of goods sold/Revenue of Maverick Cycles = 54.2%

By considering the above information, we can see that in the red hot case, the percentage is higher whereas in the maverick cycles the percentage is lower than reflecting the less efficient in the red hot case as the cost value that is incurred for producing the goods and services is higher than the sales revenue while in another case, the cost is lower as compared to the red hot

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How often should you visit your site and have others visit it for you to find out if everything is working as it should? A.Every
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Answer:

A. Every two weeks

Explanation:

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3 years ago
Read 2 more answers
You just sold 500 shares of Wesley, Inc. stock at a price of $30.92 a share. Last year, you paid $32.04 a share to buy this stoc
Vitek1552 [10]

Answer:

-$560

Explanation:

The computation of capital gain on this investment is shown below:-

Capital gain = (Stock price - Paid shares) × Sold shares

where,

The Stock price is $30.92

Paid shares is $32.04

And, the sold shares is 500 shares

Now placing these values to the above formula

So, the capital gain on this investment is

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5 0
3 years ago
Which of the following most correctly demonstrates the opportunity cost of
Svetllana [295]

The opportunity cost of choosing to live in a rural area instead of an urban area is the accessibility to greater choices which is in terms of entertainment, food, and shopping. Thus, statement B is correct.

<h3>What do you mean by opportunity cost?</h3>

In microeconomic theory, the opportunity cost of a particular activity alternative is the loss of price or advantage that could be incurred through engaging in that activity, relative to engaging in an alternative activity providing a better return in value or advantage.

The opportunity cost of choosing to live in a rural area instead of an urban area is the accessibility to greater choices in terms of entertainment, food, and shopping. Thus, statement B is correct.

Learn more about Opportunity cost here:

brainly.com/question/1549591

#SPJ1

3 0
1 year ago
After choosing among several computer server systems, the Director of Information Systems feels very positive about the final ch
Alekssandra [29.7K]

Answer:

confirmation bias

Explanation:

Confirmation bias is the tendency to search for, interpret, favor, and recall information in a way that confirms or strengthens one's prior personal beliefs or hypotheses. It is a type of cognitive bias.

3 0
3 years ago
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