Assume an economy has the following production function: Y=F (K, L) =K0.5 L0.5 Find out the per-worker production function. Write down all the steps involved
Aslam buys stock of PIA at Rs. 20,000 on 01-01-2003 and sold at Rs.25, 000 on 31-12-2003. a) What is the nominal capital gain (in percentage) from this investment? b) If inflation rate is 20% in 2003, what is the real capital gain?
suppose that the expected inflation rate is 10% in the United States and 5 % in Japan. The real interest rate is 3% in both countries; assume that purchasing power parity holds. What is the nominal interest rate in each country?
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