If Korean exports to the United States decline by $15 billion, by how much will cumulative Korean spending drop if their MPC is 0.75?
Assume an endogenous growth model with labour augmenting technology. The production function is Y = F(K,AN) with A = 2(K/N), so y = 2k. If the savings rate is s = 0.05 and there is neither population growth nor depreciation of capital, what is the growth rate of output?