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solong [7]
2 years ago
7

If output is given by a Cobb-Douglas production function, real GDP is growing at 4%, the capital to labor ratio is constant, and

the labor force is growing at 1.5%, what is the growth rate of the Solow residual
Business
1 answer:
omeli [17]2 years ago
8 0

Based on the capital to labor ratio and the labor force growth rate, the growth rate of the Solow residual is 2.5%.

<h3>What is the Solow Residual?</h3>

This is the part of the growth in real GDP that is not as a result of an increase in capital or labor. The capital remained at zero growth and the labor was growing at 1.5%.

The Solow residual growth rate will then be:

= Real GDP growth rate - Labor force growth

= 4% - 1.5%

= 2.5%

Find out more on the Solow model at brainly.com/question/15687941.

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sp2606 [1]

Answer:

Option (C) is correct.

Explanation:

In an unregulated market, negative externality results in a higher social marginal cost than the firm marginal cost because this market is not properly regulated by the government officials. Hence, these firms are not taking into account the effect of negative externalities in their cost.

We know that the consumer's decision is more offenly based on the point where the marginal cost is equal to the marginal benefit because they are not taking the impact of negative externalities.

If proper action is not taken by the government, negative externality will result in a market inefficiencies.

6 0
3 years ago
Uplift, weathering, burial, and heating/melting can transform one rock type into another. B. All rocks in the Earth's crust will
melomori [17]

Answer:

b. All rocks in the Earth's crust will, at some point, be subducted and melted to create igneous rock.

Explanation:

There are 3 types of rock:

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2. Sedimentary: when many layers of  preexistent rocks produce pressure and heat by weigth  melting the rocks.

3. Metamorphic: a new rock is formed by chemical and/or physical reaction over preexistent rocks

Sedimentary and metamorphic  would be subducted in order to produce new igneus rocks.

8 0
3 years ago
Why is it difficult for some people to save money?
sammy [17]
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Keller learns to think that everything has a lesson and a? A.)suggestion or B.)moral​
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3 years ago
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Dima020 [189]

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6 0
2 years ago
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