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morpeh [17]
3 years ago
11

An economy initially has 200 units of physical capital per worker. Each year, it increases the amount of physical capital by 10%

. According to the aggregate production function for this economy, each 1% increase in physical capital per worker, holding human capital and technology constant, increases output per worker by 0.25%. If there is no inflation and output per worker is initially $1,000, what does the estimated output per worker equal after one year
Business
1 answer:
zloy xaker [14]3 years ago
7 0

Answer:

$1,025

Explanation:

Given that,

Initial physical capital per worker = 200 units

Percentage increase in physical capital per year = 10%

Initial output per worker = $1,000

Holding human capital and technology constant,

1% increase in physical capital per worker = 0.25% increase in the output per worker

Hence, if there is a 10% increase in physical capital each year then the increase in output per worker each year is calculated as follows:

= 10 × 0.25%

= 2.5%

Therefore, the estimated output per worker equal after one year:

= Initial output per worker + Increase in output per worker each year

= $1,000 + ($1,000 × 2.5%)

= $1,000 + $25

= $1,025

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Answer:

"$224,000" is the correct solution.

Explanation:

The given values are:

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Now,

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= 6,000 ($)

hence,

On December 31, 2021, the balance will be:

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= 230,000-6,000

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2 years ago
You bought a stock three years ago and paid $45 per share. You collected a $2 dividend per share each year you held the stock an
kakasveta [241]

Answer:

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Explanation:

We use the RATE function that is shown in the excel. Kindly find the attachment below:

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Given that,  

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NPER = 3

The formula is shown below:

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Rudiy27

Answer:

$66,909

Explanation:

Calculation for How much must each deposit be (rounded to the nearest $10)?

First step is to calculate the PV using financial y

N= 25

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Now let How much must each deposit be by finding the PMT using financial calculator

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4 0
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A primary difference between macroeconomics and microeconomics is
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'Micro is the study of individuals and business decisions while macroeconomics while macro studies the decisions of the governments and countries.'

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