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Suppose two countries are identical in every respect except that Country X has a savings rate s=0.27 and Country Y has a savings rate s=0.03. In a constant-returns-to-scale Cobb-Douglas model with α=0.5, what is the ratio of the steady-state capital-output ratio in Country X relative to Country Y?

Consider a closed-economy with taxes proportional to income.Consumption: C=1000+0.8Yd, where Yd is the disposal income​, the difference between GDP and TaxesInvestment: I=2000-100r Government spending: G = 0.2Y, where Y is the GDP Taxes: T= 0.25Y Money demand: L=0.25Y−500r, where r is in % term  Real money supply: M/P=1250 Solve for the equilibrium interest rate r (in % term).

According to Krugman’s perspective on healthcare, which policy approach aligns most closely with his arguments?

Consider a closed-economy with taxes proportional to income.Consumption: C=1000+0.8Yd, where Yd is the disposal income​, the difference between GDP and TaxesInvestment: I=2000-100r Government spending: G = 0.2Y, where Y is the GDP Taxes: T= 0.25Y Money demand: L=0.25Y−500r, where r is in % term  Real money supply: M/P=1250 Assume government expenditure increases by 1000. What is the resulting change in output (Y) due to the shift of the IS curve?

Consider a Solow model with constant return to scales Cobb-Douglas production and the following parameters to answer the following question. Capital share (α) = 0.4 Savings rate (s) = 0.2 Depreciation rate (δ) = 0.05 Population growth (n) = 0.01 Technology growth (g) = 0.03 What is the value of capital-output ratio if capital growth rate decreases to 0?

Consider the Romer model. Y = (A LY)1-αKα with α=0.25, L=1000, LY=0.75L. =0.3 (0.25L)0.2A0.5 and = 0.4Y – 0.006K. In the steady state, the growth rate of labor is 1%.  What is the steady-state value of output per worker?

Using the Taylor Rule. Suppose the real equilibrium interest rate is 2%, actual inflation is -2%, target inflation is 2%, and the output gap is 0.5%. What is the nominal interest rate?

If Country M has a capital-labor ratio of 5:1 and Country N has a ratio of 1:3, which good is Country M most likely to export under the Heckscher–Ohlin model?

In a constant-returns Cobb-Douglas economy, output grew by 5%, capital grew by 4%, labor grew by 1%, and the labor share is 0.65. What is the TFP growth rate?

In comparing inequality trends between the U.S. and many European countries, which of the following best explains why inequality has risen more in the U.S.?