Homework Answers
Answer. Consumption of people in an economy does not only depend on current income, but also on the expected income of future as people are forward looking. Concumer aims to smooth their comsunconsu over the lifetime period.
As a shock to current GDP, people initially cut the current consumption spending by large and as the time horizon and economy revive the consumer spending cut grow by smaller as the effects of current shock to GDP are spreaded over a large period.
Another explainatio can be that the one unit decrease in income have higher effect than one unit increase in income. One unit rise in income leads to less than 1 unit rise in consumlcons spending.
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Exercise 5.9: Imagine extending our 2-period model to allow for many time periods T. Consider a...
Consider our intertemporal model, except this time we have three periods, wheret 0 is the first p...
Consider our intertemporal model, except this time we have three periods, wheret 0 is the first period, t = 1 is the second period, and t = 2 is the third and last period. This economy is populated by a representative agent and a government. The consumer seeks to maximize lifetime utility given by u(c) - an amount of gt = 0.2%, yt = 10 Vt. BIn(c). The government aims to spend t-0 Write down the individual's budget constraint. (0.5...
2. Capital Tax: In our two period consumption-savings model, suppose that positive interest income in period...
2. Capital Tax: In our two period consumption-savings model, suppose that positive interest income in period 2 is taxed at rate t. Assume that Ao -0, the individual has positive endowment in both periods, and nominal prices for the good remain the same despite the ax (a) Write down the budget constraints in each period and obtain an algebraic expression for his life-time budget constraint. (b) Suppose that at the optimal choice, the representative individual is choosing not to save...
Consider the two-period model from Chapter 9, and assume there is one representative consumer with utility...
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1. According to the paper, what does lactate dehydrogenase (LDH) do and what does it allow...
1. According to the paper, what does lactate dehydrogenase
(LDH) do and what does it allow to happen within the myofiber? (5
points)
2. According to the paper, what is the major disadvantage of
relying on glycolysis during high-intensity exercise? (5
points)
3. Using Figure 1 in the paper, briefly describe the different
sources of ATP production at 50% versus 90% AND explain whether you
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Consider our intertemporal model, except this time we have three periods, wheret 0 is the first period, t = 1 is the second period, and t = 2 is the third and last period. This economy is populated by a representative agent and a government. The consumer seeks to maximize lifetime utility given by u(c) - an amount of gt = 0.2%, yt = 10 Vt. BIn(c). The government aims to spend t-0 Write down the individual's budget constraint. (0.5...
2. Capital Tax: In our two period consumption-savings model, suppose that positive interest income in period 2 is taxed at rate t. Assume that Ao -0, the individual has positive endowment in both periods, and nominal prices for the good remain the same despite the ax (a) Write down the budget constraints in each period and obtain an algebraic expression for his life-time budget constraint. (b) Suppose that at the optimal choice, the representative individual is choosing not to save...
Consider the two-period model from Chapter 9, and assume there is one representative consumer with utility function uc,d) = Iníc) + In(d), so the time discount factor is 3 = 1. There is also a government that levies lump-sum taxes in the current and future periods. The government has expenditures of G = 580 in the current period and G' = 630 in the future period. (a) Suppose the consumer has current and future income (w.y') = (3500, 6510), and...
Consider an unincorporated firm with a two period (1 and 2) time horizon. At the beginning of period 1, the firm has a predetermined capital stock, K. Důring period 1, gross investment expenditure, I, financed out of retained earnings, are incurred with the purpose of both maintaining and increasing the capital stock in period 2. In each of the two periods, the capital stock depreciates at a rate 6, so at the beginning of period 2, the firm's capital stock...
2. Use the data in hpricel.wfl uploaded on Moodle for this exercise. We assume that all assump- tions of the Classical Linear Model are satisfied for the model used in this question. (a) Estimate the model and report the results in the usual form, including the standard error of the regression. Obtain the predicted price when we plug in lotsize - 10, 000, sqrft - 2,300, and bdrms- 4; round this price to the nearest dollar. (b) Run a regression...
Q1 Which of the following are included and which are excluded in calculating this year's GDP. Explain in each instance. a. A monthly scholarship cheque received by an economics student b. The purchase of an almost new tractor by farmer Kojo C. The cashing in of a savings bond d. An increase in business inventories e. Tim Horton's purchases a corner grocery store f. Fearless Qweenie Kong, a stuntwoman, purchases a life insurance policy for a billion dollars ($) g....
1. According to the paper, what does lactate dehydrogenase
(LDH) do and what does it allow to happen within the myofiber? (5
points)
2. According to the paper, what is the major disadvantage of
relying on glycolysis during high-intensity exercise? (5
points)
3. Using Figure 1 in the paper, briefly describe the different
sources of ATP production at 50% versus 90% AND explain whether you
believe this depiction of ATP production applies to a Type IIX
myofiber in a human....
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