Question: Consider two economies with having the same production functions during the 2000-2009 period. Discuss the possible impacts of the following developments during 2010-2020 on equilibrium

Consider two economies with having the same production functions during the 2000-2009 period. Discuss the possible impacts of the following developments during 2010-2020 on equilibrium levels of output and capital-output ratios in each of these two economies. Please provide all the necessary graphs to answer the questions.

(15 (+5 bonus) points) Research and Development (R&D) expenditures leading to higher technology in country A doubles whilst in country B remain the same.

(20 (+5 bonus) points) Saving rate in country A doubles whilst consumption rate in country B increases by 50 %.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Help answer the following problems...all parts needs to be done 1. (a) (b) (b) (In) (E) (1) (\"1 Dene the economic terms: individual (firm) supply; market supply. Explain. with the aid of labelled...

Help me please Recurrent major depressions in the world economy at the pace of 20 and 50 years have been the subject of studies sinceJean Charles Lonard de Sismondi(1773-1842) provided the first...

(Short-Answer and Algebraic Questions): (The numbers in square brackets give the breakdown of the points for various parts of each question. please explain your answers.) 1. This questions is based...

tackle all parts 1. The diagram below shows a firm operating under conditions of perfect competition in the short run. Price (a) What is represented by the lines numbered 1 to 3? Use the answer box...

Two articles will be attached below in order to understand the question given. The main effects of Regulation Q Restrictions and technological changes on the scale economies for commercial banks. In...

a]: Summarize at least one example of an externality presented in the report? mWhat are some of the possible remedies to externalities discussed in the report? a What are some of the externalities...

Using the formulas for the steady state levels of capital and output, compare the capital stock, , and output, , after the drop in the population . (10 points) c. Graph the level of output (y-axis)...

SUMMARY this article for about 2 pages with single spacing. Thank you. ECONOMETRICS: MEASUREMENT I N ECONOMICS1 I As the first incumbent of a new Chair in this University, I thought that in this...

% Provide the solutions. 4. (20) Consider a version of the continuous time Mortensen-Pissarides labor market model with match- specific productivity. Labor force is normalized to 1, and there is a...

Answer the following attachements The social cost of carbon (SCC) is an estimate of the dollar cost to society of emitting each additional tonne of carbon dioxide equivalent. Assume for now that the...

The condensed statement of financial position of Orosco and Bonoan on Dec. 31, 2005, follows: Assets Current Assets Plant Assets (net) Orosco and Bonoan Statement of Financial Position December 31,...

A financial advisor is concerned that the time she has to spend with her clients has increased because of the increasing complexity of the investment products available. The advisor asks her...

find parametric equations for the line - 5 , 2 , 5 and 1 , 7 , - 4

How many terms are needed in the series to compute arcctx for x 2 arccot.x = 2 - x + 3 5 7

How many ATP are needed to copy the total genome of the body? Assume that all cells are replaced once/day. How many ATP are needed to copy a human genome if living for 70 years? How many glucose...

Morton Salt is a subsidiary of 'Morton International, a manufacturer of specialty chemicals, air bags, and salt products. The Morton salt-processing facility in Silver Springs. New York between...

Virgin America is a subsidiary of Virgin group. It works on core value of providing high quality travel at low cost. Virgin America segments the airline market based on the purchasing capacity and...

A fluid enters with a steady flow of 3. 7 kgfs and an initial pressure of 690 kPa, an initial density of 3.2 kgf^3, an initial velocity of 60 m/s, and an initial internal energy o2000 kJ /kg. It...

Among a group of 5 8 programmers, who know either Java or Python or both, 1 5 only know Java and 1 3 only know Python. What is the probability of randomly choosing a programmer who knows both...

Peoples understanding of what is being said

5. Develop a circular model, with positive and negative feedback loops, showing the relationships between the following critical variables: The population of a city Industrialization Relocation ...

The quality of the proposed ideas