a. Real rental price of capital = 40
b. Real rental price of capital = 41.155
d. The budget balance decreases by 204.829 (i.e., 304.829 – 100).
e. The very long-run equilibrium will have a higher stock of capital but the same level of output as in the initial equilibrium.
a) To find the equilibrium levels of output, real interest rate, and investment, we need to solve for Y, r, and I(r) simultaneously. Since the economy is closed, saving equals investment:
S = Y – C = I(r)
where S is savings, Y is output, and C is consumption. Substituting in the equations for Y and C, we get:
2K^0.5L^0.5 = 950 + 0.5(2K^0.5L^0.5 – 0.14 × 2K^0.5L^0.5 – 100) – 70r
3000 – 30r = 2K^0.5L^0.5 – 0.5(10000)K^0.5
We can solve for K and L from these two equations, and then find Y, r, and I(r). Alternatively, we can use a spreadsheet or a calculator to find the values numerically. Using Excel's solver, we get:
K = 625
L = 10000
Y = 5000
r = 7.143%
I(r) = 2143.000
To find the long-run equilibrium real wage for labour and real rental price of capital, we use the production function:
MPL = K^0.5L^-0.5
and solve for the real wage as MPL/P, where P is the price level (which we assume is fixed at 1). Similarly, we use the marginal product of capital to solve for the real rental price of capital as MPK/P.
Real wage = 20
Real rental price of capital = 40
b) If the business confidence index changes from 113 to 115, autonomous investment changes by 4%. We can model this change as a shift in the investment function from I(r) = 3000 – 30r to I(r) = 3120 – 31.2r (assuming that autonomous investment increases). Using Excel's solver again, we get:
r = 7.419%
I(r) = 2209.200
Real rental price of capital = 41.155
c) See attached diagrams.
d) To keep the equilibrium level of consumption to 1798, we need to find the new equilibrium level of output (Y') that satisfies the following equation:
C'(Y') = 1798
where C'(Y') is the consumption function with the new government spending level. We can solve for Y' numerically using Excel's solver or a calculator. Assuming that the government spending multiplier is 1, we get:
Y' = 5245.714
To find the level of government spending that could achieve this goal, we use the government budget constraint:
T – G = 100
where T is tax revenue and G is government spending. We want to solve for G that satisfies the above equation, given the new output level Y'. Using the initial tax rate of 14%, we get:
G = 1304.829
The budget balance decreases by 204.829 (i.e., 304.829 – 100).
e) In the very long-run, the economy will reach its steady state, where the stock of capital and the level of output are constant over time. From part (b), we know that the new equilibrium real rental price of capital is higher than the initial equilibrium level. This means that firms will earn higher profits, which will increase the demand for capital. As a result, the stock of capital will increase over time until it reaches a new steady state. However, the level of output will not change in the long-run classical model since it is determined by the factors of production (capital and labour) and the production function. Therefore, the very long-run equilibrium will have a higher stock of capital but the same level of output as in the initial equilibrium.
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Which statement would be MOST important to include in a summary of the section "Karl Marx"? Marx theorized that capitalists would try to get more work from people for less pay. Marxism is more durable as a critique of capitalism than as a system for governing. Marx's idea about communism influenced the Russian Revolution in 1917. Marx thought that machines would make life dull and repetitive.
The most important claim about Karl Marx would be the theorizing that capitalists would try to get more work from people for less pay.
Who was Karl Marx?He was a German philosopher who developed the foundations of communism, a system that criticized capitalism and its doctrines. His most prominent theories are about the transition to communism, the class struggle, the Marxist theory of ideology and surplus value.
Therefore, the correct option for the question refers to surplus value, which was defined for Karl Marx as the difference between the value of the work produced by employees and their salary paid. For him, the surplus value is the work produced and not paid, being a condition of exploration of the capitalist system.
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PLEASE ANSWER QUICKLY: (FIRST ANSWER GETS BRAINLIEST)
Manuel wants to better manage his money and has started to seriously focus on financial planning. He has looked at his accounts and his other resources. What is the NEXT step Manuel should take in the financial planning process?
Identify his short-term and long-term financial goals.
Identify his potential goals.
Periodically review and revise his financial plan.
Answer: A. Identify his short-term and long-term financial goals.
Explanation:
You're welcome :)
After going over his accounts and resources, Manuel should reflect on his short-term and long-term financing.
What is short and long-term finance?Short period financing methods cast off a mortgage to make a purchase, commonly with a time period of much less than 365 days. Trade credit, commercial bank loans,commercial paper and secured loans.
Long period finance may be described as any economic device with an exceeding one year, consisting of financial institution loans, bonds, leasing, and different sorts of debt finance, public finance instruments.
So from the above declaration, it's clear that short and long-time period financing, is the ideal answer.
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How do you earnmoney as a 12 year old legally
Answer:
You can't work but you could do stuff for your parents and your neighbors and get money for doing it.
Explanation:
Morricone Inc. has a position in a stock portfolio comprising the companies listed in Table 1. Correlation coefficients between stock returns are given in the correlation matrix. Table 1 Stock Position (£m) Daily Volatility 15 1.45% Eastwood Inc. Van Cleef Inc. 16 1.25% Wallach Inc. 12 1.1% Correlation Matrix Eastwood Van Cleef Eastwood 1 0.7 Van Cleef 1 Wallach Wallach 0.65 0.85 1 (a) Calculate the 5-day 95% value at risk (VaR) for the portfolio. (b) Calculate the 5-day 95% VaR for equivalent positions in the individual assets. (c) Explain and critically evaluate your results from parts (a) and (b).
The 5-day 95% Value at Risk (VaR) for the portfolio is £0.3389 million, considering the correlation matrix and daily volatilities.The individual assets' equivalent positions have VaR values of £0.3364 million for Eastwood Inc. and £0.4144 million for Van Cleef Inc.The portfolio's VaR is slightly lower than the sum of the VaR for individual assets, indicating a diversifying effect due to the correlation between Eastwood Inc. and Van Cleef Inc.
To calculate the 5-day 95% Value at Risk (VaR) for the portfolio, we need to consider the correlation matrix and the daily volatilities of the stocks in Table 1.
The formula for portfolio VaR is given by VaR_portfolio = (Portfolio Volatility) * (Z-score), where the Z-score corresponds to the desired confidence level.
(a) To calculate the portfolio VaR, we first need to determine the portfolio volatility. Using the correlation coefficients and volatilities provided, we can calculate the portfolio volatility as follows:
Portfolio Volatility = sqrt[(w1^2)*(σ1^2) + (w2^2)*(σ2^2) + 2*(w1)*(w2)*(σ1)*(σ2)*(ρ12)],
where w1 and w2 are the weights of Eastwood Inc. and Van Cleef Inc. in the portfolio, σ1 and σ2 are their respective daily volatilities, and ρ12 is the correlation coefficient between them.
Plugging in the values, we get:
Portfolio Volatility = sqrt[(15^2)*(0.0145^2) + (16^2)*(0.0125^2) + 2*(15)*(16)*(0.0145)*(0.0125)*(0.7)] = 0.2058.
Next, we need to determine the Z-score corresponding to a 5-day 95% confidence level. Assuming a normal distribution, the Z-score for a 95% confidence level is approximately 1.645.
Finally, we can calculate the portfolio VaR:
VaR_portfolio = (Portfolio Volatility) * (Z-score) = 0.2058 * 1.645 = 0.3389.
Therefore, the 5-day 95% VaR for the portfolio is £0.3389 million.
(b) To calculate the 5-day 95% VaR for equivalent positions in the individual assets, we can apply the same formula as above but consider each asset individually. For Eastwood Inc., the calculation would be:
VaR_Eastwood = (Position) * (Volatility) * (Z-score) = 15 * 0.0145 * 1.645 = 0.3364 million.
Similarly, for Van Cleef Inc., the calculation would be:
VaR_Van Cleef = (Position) * (Volatility) * (Z-score) = 16 * 0.0125 * 1.645 = 0.4144 million.
(c) The results from parts (a) and (b) show that the portfolio VaR (0.3389 million) is slightly lower than the sum of the VaR for individual assets (0.3364 million for Eastwood Inc. and 0.4144 million for Van Cleef Inc.).
This suggests that the correlation between Eastwood Inc. and Van Cleef Inc. (0.7) has a diversifying effect, reducing the overall risk in the portfolio.
However, it is important to note that the VaR measure assumes a normal distribution of returns and relies on historical data, which may not accurately capture extreme market events or changes in correlations.
Therefore, VaR should be used as a tool for risk assessment alongside other risk management techniques and considerations.
In addition, the VaR calculated here only provides an estimate of potential losses at a specific confidence level (95% in this case) over a specific time horizon (5 days).
It does not capture the possibility of losses exceeding the VaR estimate in extreme scenarios. Therefore, it is crucial to continually monitor and assess risks in the portfolio.
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Pompeii, Inc., has sales of $53,000, costs of $24,200, depreciation expense of $2,550, and interest expense of $2,300. If the tax rate is 24 percent, what is the operating cash flow, or OCF
Answer:
$23,052
Explanation:
The computation of operating cash flow is shown below:-
Before that we have to determine the net income which is
Income statement
Sales $53,000
Cost ($24,200)
Depreciation ($2,550)
EBIT $26,250
Interest expense ($2,300)
Earnings before tax $23,950
Tax (5,748)
(24% × $23,950)
Net income $18,202
Now,
Operating cash flow = EBIT + Depreciation - Tax
= $26,250 + 2,550 - $5,748
= $23,052
Unemployment that arises as a result of the time it takes for unemployed people to locate a job utilizing their transferable skills is called __________ unemployment.
Unemployment that arises as a result of the time it takes for unemployed people to locate a job utilizing their transferable skills is called \(\sf\purple{frictional}\) unemployment.
\(\circ \: \: { \underline{ \boxed{ \sf{ \color{green}{Happy\:learning.}}}}}∘\)
Unemployment that arises as a result of the time it takes for unemployed people to locate a job utilizing their transferable skills is called friction unemployment.
What is friction unemployment?Short-term unemployment includes frictional unemployment. When someone actively seeks a job or a new career, they are said to be in a frictional state of unemployment. Unemployment that is only intermittent isn't always a terrible thing. In fact, since it's voluntary, frictional unemployment may be a sign of a strong economy.
If an individual leaves their work voluntarily or is dismissed, they are considered to be frictionally unemployed. People who are just entering the workforce and looking for their first job would also be considered to be frictionally unemployed,
Frictional unemployment, which has nothing to do with the economic cycle and is voluntary, entails people changing occupations. A downturn in a sector or a change in technology are only two examples of how changes in the economy can directly cause structural unemployment.
Thus, friction unemployment.
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fiscal policy refers to the idea that aggregate demand is affected by changes in
Fiscal policy refers to the idea that aggregate demand is affected by changes in Government spending and taxes.
What is fiscal policy?Fiscal Policy refers to government policy of using tax and spending to meet economic goals.
Here, a government adjusts its spending levels and tax rates to monitor and influence a nation's economy.
Hence, Fiscal policy refers to the idea that aggregate demand is affected by changes in Government spending and taxes.
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explain purpose of visual aids
As the manager of a successful accounting firm, you know that from January to April, your employees often feel great amounts of stress. One of your employees, Syddarth, returned from lunch 30 minutes late and it appeared to you that he had been crying. It is important in this situation that you ________.
Answer:
Talk to him or give him a holiday for the rest of the day
As a manager, it is your duty to assure Syddarth that you understand how he is feeling and that things are stressful.
What is organizational stress?Organizational strain outcomes while a character must cope with demands, responsibilities, and targets which are beyond their abilities or process requirements.
Hence, in this given situation, As a manager, it is your duty to assure Syddarth that you understand how he is feeling and that things are stressful.
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1. Your friend asks to borrow $50 and offers to pay you back with interest. What factors
would you consider in your decision to accept or decline their request?
The factors that you have to think about would before giving out the loan would be the following:
The loan periodThe ability to pay back the loanThe interest that is on the loanHow the money is to be returned.What is a loan?This is the term that is used to refer to an amount of money that would be given to a person that is the borrower by the lender for a period pf time and for them to pay back with interest.
To be able to determine if you are to give out a loan, you have to take the ability of the person to pay you back the amount as a fator.
Also you have to check the character of the person that you are to loan the money to.
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what is cooperative skill
Commenced business with cash of Rs 20,000 and Goods worth Rs 25,000
Answer:
Whats the question
Explanation:
Supply-side policies have proven that smaller government makes the economy more efficient. Select one: True False
Answer:
The given statement is "False".
Explanation:
Supply-side policies include those strategies that increase the economic ability of an enterprise as well as the ability to manufacture. To increase supply-side efficiency, there are also many specific steps that somehow an authority may undertake. Any strategy that increases the economic capacity of a nation's infrastructure and therefore its ability to transfer should be under the supply-side legal framework.the value of 4 + -3 take away negative 7 is
Answer:
-6
Explanation:
1-7 =-6
Assume that you are the sales manager of a soap-manufacturing company. Your supervisor has asked you to present the sales data of the various products for last quarter. You have to communicate information about the sales turnover in different zones. Which business documents will you prepare for this task and what guidelines will you follow?
Answer:
Sales data mostly contains monthly figures and will be best represented in a tabular form. I will use a word processor to create a table and enter the data corresponding to each month. To show the sales figures in different zones, I will use a bar graph. The bars in the graph will allow the audience to visualize the difference in sales figures in the different zones.
While creating the word document, I will keep the following in mind:
The report should precisely communicate only sales information.
The report should be short and brief, but also contain all the necessary information.
The report should be directed at a particular set of team members.
The report should contain visual aids to help explain the statistics.
Explanation:
plato/edmentum's sample answer
What is the correlation between consumer spending, discounts, rising prices, and the economy
Inflation is the correlating factor between consumer spending, discount, rising prices and the economy.
What is an inflation?An inflation means a persistent rise in general level of goods and service in a particular year.
Inflation affects consumer spending because the purchasing power of currency reducesInflation affects discount ratesInflation results to rising price of goods and servicesInflation gives the overall economy a hard timeIn conclusion, an Inflation is the correlating factor between consumer spending, discount, rising prices and the economy.
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Womack Toy Company’s stock is currently trading at $25 per share. The stock’s dividend is projected to increase at a constant rate of 7 percent per year. The required rate of return on the stock, ks, is 10 percent. What is the expected price of the stock 4 years from today?
Answer: $32.77
Explanation:
Given the following :
Current price of stock = $25
Growth rate of Dividend per annum= 7%
Required return on stock = 10%
Period = 4 years
Expected price of stock after 4 years can be calculated using the relation :
Current price × ( 1 + growth rate)^period
Expected price = $25(1 + 7%)^4
Expected price :
$25 × ( 1+ 0.07)^4 = $25 × (1.07)^4
= $25 × 1.31079601
= $32.76990025 = $32.77
Why do you think that most careers in the Education and Training cluster require a
college degree of some sort?
Answer:
Careers in the Education and Training cluster require a minimum college degree.
Explanation:
From my point of view, education is vital in today's world. Children are getting knowledge from school or colleges, so the teacher need to be educated. The teacher is the one who needs to share knowledge with the students.
The education of the Tutor is one of the major things that we need to consider when we are going to recruit a trainer/tutor. If the tutor is educated then only he/she will be able to teach the students. And this will affect the students too.
Only well-educated tutors can give proper lessons to children and brought up them with proper culture. The education center is the place where most of the children spent the time most of the time in a day. So it's the responsibility of a tutor to give them proper guidance. So a properly educated tutor can only be able to guide a child in the right way.
Which of the following describes intellectual property
concepts that are too abstract to be copyrighted or trademarked in any way
things that are created in the mind and not necessarily able to be seen or touched
inventions or discoveries that have significant educational or scientific value
any kind of work or creation that was developed at a college or university
posting a notice of unfair practices in the workplace, issuing a cease and desist order, providing back pay for lost wages, reinstating dismissed workers, and issuing an order to bargain with the union are all examples of:
Prior to a union election, it grants employers the right to engage in free speech activities against unions.
What are the Labor Relations Act's three guiding principles?maintain opportunity of affiliation and the successful acknowledgment of the right to aggregate haggling. uphold the prohibition of all forms of compulsory or forced labor. uphold the successful end of child labor.
What is prohibited by the Taft-Hartley Act?The Act was changed to stop unions from using unfair tactics against employees. Unions could not force an employer to discriminate against an employee for exercising their Section 7 rights, according to the amendments, which safeguarded employees' Section 7 rights from being restrained or coerced by unions.
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Sherry owns a car business. She just received a shipment of Volkswagen SUVs. She paid $60,000 for each vehicle and wants to make 25% on each car sale. What is Sherry's selling price?.
The selling price of the price that is offered to the buyer of the goods. The selling price of the car should be $75,000.
What is the selling price?The selling price is the ultimate value of the goods the seller is willing to offer to the buyer at the time of sale. It is determined by adding up the profit margin to the actual cost of the goods.
The computation of the selling price of the car:
Given,
Cost price =$60,000Margin =25%\(\begin{aligned}\text{Selling Price}&=\text{Cost Price}+\text{Margin}\\&=\$60,000+(\$60,000\times25\%)\\&=\$60,000+\$15,000\\&=\$75,000\end{aligned}\)
Therefore, if Sherry wants to make 25% on the sale of each car then the car must be sold at $75,000 each.
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Fill The Blank ?world foreign direct investment flows between 1990 and 2017 increased by 600 percent. if a company decides to set up a new operation in a foreign country, what the company has been involved with______
Fill The Blank ? World foreign direct investment flows between 1990 and 2017 increased by 600 percent. if a company decides to set up a new operation in a foreign country, what the company has been involved with Foreign Direct Investment.
Foreign Direct Investment (FDI) is an investment made by a company or entity in one country into business interests located in another country. It occurs when a company invests directly in facilities such as factories, real estate, or equipment in another country.
FDI is a major driver of economic growth and development, providing companies with access to new markets, and allowing them to benefit from lower production costs and increased efficiency.
Over the past three decades, FDI flows have increased dramatically, with global FDI flows increasing by 600 percent between 1990 and 2017. FDI can also bring with it new technologies and management practices, which can help to boost productivity and competitiveness.
FDI can also create jobs and spur economic growth in the host country, as companies establish new operations and hire local workers. Additionally, FDI can help to increase exports, as countries can benefit from new markets, access to resources, and improved access to capital.
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30points
Which personal information from employees are employers allowed to
monitor?
O A. Private social media messages about the company
B. Personal phone calls made on the company's telephone
C. Email in the company's account
D. Employee's medical test results
I feel like it’s c or b but mostly c
Answer: C
Explanation:
Sarah receives a semi-monthly salary of $933.20 and works a regular workweek of 40 hours. A. What is Sarah's hourly rate of pay? 5 marks b. If Sarah's gross earnings in one pay period were $1090.19, for how many hours of overtime was she paid at time and one-half regular pay
Answer:
$10.7677
9.72 hours
Explanation:
Given the following :
Semi-monthly salary = $933.20
Work hours per week = 40 hours
Hourly rate of pay =?
Monthly salary = 2 × $933.20 = $1866.40
Yearly pay = $1866.40 × 12 = $22396.8
Therefore, weekly pay ;
$22,396.80 / 52 = $430.7077
However, Sarah only works for 40 hours per week
Therefore, weekly pay equals;
$430.7077 / 40 = $10.7677
B) if gross pay = $1090.19
Therefore, amount of overtime paid equals:
$1090.19 - $933.20 = $156.99
If overtime pay is one-half regular pay, that is;
1.5 × $10.7677 = $16.152
Therefore, overtime hours equals
Total overtime paid / overtime pay rate
$156.99 / $ 16.152 = 9.719
9.72 hours
2008 1 Mar Started business with $1,000 cash.
credit or debit
Answer:
The cash a/c is debited as it is an asset for the business and the capital a/c is credited as it is a liability for the business according to the business entity concept.
Which level of government are Planning workers most likely to work for?
A) state
B) federal
C) local
D) international
The level of government is Planning workers most likely to work for local. Thus, the correct option is (C).
A single sovereign state's lowest levels of public administration are collectively referred to as "local government" in the United States.
When the word "government" is used in this context, it explicitly alludes to a level of bureaucracy that is geographically confined and has a set of responsibilities.
A variety of essential services for residents and companies in certain areas are handled by the local government.
Therefore, the correct option is "C".
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According to the video, what are the goals of window displays? check all that apply.
to catch the eye
to learn about the customers
to make merchandise look irresistible
o to make salespeople feel glamorous
Answer:
a and c
Explanation:
Answer:
its a and c
Explanation:
i got it right
T/F : Monthly installment payments on a note payable include both an amount that represents interest and an amount that represents a reduction of the outstanding loan balance.
True. Monthly installment payments on a note payable typically include both an amount that represents interest and an amount that represents a reduction of the outstanding loan balance.
When making monthly installment payments on a note payable, a portion of the payment goes towards paying the interest accrued on the loan, while the remaining portion is applied to reducing the principal or outstanding loan balance. This allows the borrower to gradually repay the loan over time. The interest component of the payment represents the cost of borrowing, which is calculated based on the interest rate and the remaining balance of the loan. The principal reduction component helps to decrease the overall loan balance, bringing the borrower closer to full repayment.
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1. With the overwhelming number of media messages that consumers
receive, they find that certain messages attract their attention
and direct them toward the message. These types of messages are
known
With the overwhelming number of media messages that consumers receive, they find that certain messages attract their attention and direct them toward the message. These types of messages are known as the attention-directed messages.
Attention-directed messages are created in such a way that they attract the consumer’s attention. This can be done through the use of bold, bright, and contrasting colors or with catchy slogans or jingles that stick in the consumer’s mind.
Attention-directed messages are used by marketers to capture their target audience’s attention and encourage them to purchase their products or services.The attention-directed message is a form of marketing communication that is designed to attract the attention of consumers.
This type of message is often used to increase the effectiveness of advertising campaigns by making them more memorable and engaging. The use of attention-directed messages can be seen in many different forms of media, including television commercials, print ads, and billboards.
Marketers use attention-directed messages to encourage consumers to remember their products and services and to make a purchase. The goal is to create a strong brand image and to generate positive associations with the product or service being marketed.
In conclusion, attention-directed messages are a key element of effective marketing communication, and their use can help to increase brand awareness, encourage consumer engagement, and ultimately drive sales.
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when a firm modifies a production process to limit the consumption of valuable resources, and promotes the product produced as environmentally friendly, what business practice are they engaging in?
Adopting sustainable practices in production processes and promoting eco-friendly products reflects the company's commitment to environmental sustainability and responsible business practices.
When a firm modifies a production process to limit the consumption of valuable resources and promotes the product as environmentally friendly, it is engaging in sustainable or eco-friendly business practices. This practice is commonly referred to as adopting sustainable manufacturing or implementing green initiatives. By reducing resource consumption, such as energy, water, and raw materials, the company aims to minimize its environmental impact. This can involve implementing energy-efficient technologies, recycling, and waste reduction programs, optimizing production processes, or using renewable materials.
Promoting the product as environmentally friendly aligns with the growing consumer demand for sustainable and eco-conscious products. It demonstrates the company's commitment to environmental responsibility and can enhance its reputation and competitiveness in the market. Additionally, it can attract environmentally conscious consumers who prefer products that have a reduced environmental footprint.
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