Completed quickly and followed instructions given. Grammar, spelling, etc. was all good as well. Thank you so much! Will hire in the future.
In country RBC, only labor is used in production. The production function is Y = zN, where z is labor productivity. In country RBC, economic booms and recessions are due to cyclical movements of zs. For simplicity suppose that z takes two values: either z = 195 or z = 205. The chance that z = 205 is 0.7 and the chance that z = 195 is 0.3. Roughly, country RBC is in economic boom 70% of time and recession 30% of the time. The representative household in country RBC has utility u(c, l) = √ c + 20√ l
. (4 points) The above stabilization policy leads to a waste of resources, hence may not be favorable to households. Instead, government stabilizes production through wage subsidies financed by a lump-sum tax (tax cut financed with debt). The representative household’s budget constraint becomes the following. c = w(1 + s)(1 − l) − T. Show that s = 6.5375% and T = 4.5412 during recession will achieve the goal of stable output as well.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more