# All Questions

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### Proving the Global stability in the Solow Swan Model

Consider a simplified version of the Solow-Swan model in discrete time, where technology is normalized to one and the population size is constant. The Solow equation is given by ...
• 319
31 views

### Is cross-price elasticity a Cobb-Douglas production function?

This may seem like a silly question... Well... I guess, because it really is... But I have just realized that the intuition behind both principles may not be mutually exclusive. Consider we would like ...
• 798
27 views

### What is the frisch elasticity and its meaning?

I understand that Frisch elasticity is the "elasticity of hours worked to the wage rate". I wonder why then we use this specific naming only for this? Is this to make it clear what this ...
1 vote
34 views

### Calculating annual inflation rates confusion

Im surprised as to why im finding this question so complicated , I'm assuming its due to the miscommunication and misuse of the term in inflation without explaining the context they are using it in . ...
• 23
1 vote
21 views

### Proof that utility function is differentiable

after a little problem (I asked my question in the answer section, apologize, all my bad for this), I repost my question here with the same message : "I'm new on economics stackexchange, and I've ...
• 11
10 views

### How to get the function that shows the relationship between wage and labor supplied

In the purchase-leisure trade-off curve, we get the relationship between wage and working hours. But how can we get the relationship between wage and quantity of labor supplied? The demand curve is ...
1 vote
20 views

### Can investments fund welfare?

People are encouraged to invest in order to provide passive income for their retirement. Meanwhile, lots of the population is on welfare, which, I understand, comes out of taxes. Investing isn't ...
61 views

### Should younger people earn more then older ones?

I think in all societies it is usually the case that when you start a job you are usually paid less than a person in the same position who is about to retire. I'm not an economist by any means, but I ...
32 views

### In a two-good world, if one good is a Giffen good then the other is a good luxury

In a two-good world, if one good is a Giffen good then the other is a good luxury. This is a false statement. Reason: If X is a Giffen good then Y must be a normal good. But we cannot get any ...
• 109
36 views

### True or False: If there is no money illusion, once all price elasticity is known, the income elasticity of commodity demand can be calculated

True, false or uncertain: If there is no money illusion, once all price elasticity is known, the income elasticity of commodity demand can be calculated. My answer is false. I don't think it's ...
• 109
72 views

• 798
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### Questions about demand curve as marginal benefit curve

I understand that the demand curve can be viewed as a marginal benefit curve in that, for a given quantity, the price needed for that quantity to be demanded will be equal to the marginal benefit of ...
50 views

### Proof for Marshallian Demand function

If you have a Marshallian demand function that is strictly convex, then it satisfies WARP. How to prove this?
1 vote
42 views

### Applying linearization formula to Leeper(1991) model

I am trying to derive equation (3.1) and (3.2) from Leeper(1991). (3.1) $E_t \tilde{π}_{t+1} = αβ\tilde{\pi}_t + βθ_t$ (3.2) \$φ_1 \tilde{π}_t + \tilde{b}_t + φ_2 \tilde{π}_{t−1} - (β^{−1} − γ)\tilde{b}...
• 310
74 views

### Can GDP ever be negative?

Imagine that in an economy we only produced a toy and that cost us 10 dollars. We don’t sell this toy in year 1. Then this goes under Investment as +10 and GDP is +10. But say the only thing we do in ...
• 123
1 vote