Specinc- Suppose that land is specific to corn, capital is specific to automobiles, labor is mobile...
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Specinc- Suppose that land is specific to corn, capital is specific to automobiles, labor is mobile between sectors, and payments are as follows: Automobiles: Sales revenue = 200; Payments to labor = 100; Payments to capital = 100 Corn: Sales revenue = 200; Payments to labor = 40; Payments to land = 160 Suppose price of corn increases by 20%, the price of automobiles increases by 10%, and the wage increases by 15%. Calculate the Nominal Percentage change on Rental of Capital and put your answer in the box below. (Keep your answer in percentage with 2 decimals. For example, If you got 15.26% fill in 15.26 in the box below. Do NOT use 0.1526.) -10 Specinc- Suppose that land is specific to corn, capital is specific to automobiles, labor is mobile between sectors, and payments are as follows: Automobiles: Sales revenue = 200; Payments to labor = 100; Payments to capital = 100 Corn: Sales revenue = 200; Payments to labor = 40; Payments to land = 160 Suppose price of corn increases by 20%, the price of automobiles increases by 10%, and the wage increases by 15%. Calculate the Nominal Percentage change on Rental of Capital and put your answer in the box below. (Keep your answer in percentage with 2 decimals. For example, If you got 15.26% fill in 15.26 in the box below. Do NOT use 0.1526.) -10
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To calculate the nominal percentage change in the rental of capital we need to consider the changes ... View the full answer
Related Book For
International Economics
ISBN: 978-1429278447
3rd edition
Authors: Robert C. Feenstra, Alan M. Taylor
Posted Date:
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