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Category > Management Posted 13 Jan 2018 My Price 5.00

fraction of output

Suppose that investment as a fraction of output in the United States rises permanently from 0.15 to 0.18. Assume that capital’s share is

(a) By about how much does output eventually rise relative to what it would have been without the rise in investment?

(b) By about how much does consumption rise relative to what it would have been without the rise in investment?

(c) What is the immediate effect of the rise in investment on consumption? About how long does it take for consumption to return to what it would have been without the rise in investment?

 

 
 

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Maurice Tutor
(5)
Status NEW Posted 13 Jan 2018 07:01 PM My Price 5.00

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