Assume that the Puerto Rico economy is initially at the golden-rule level of per capita capital stock. Suppose that Hurricane Maria wiped out 25% of the island’s capital stock and (even more tragically) 10% of the island’s labor force as they migrated to the US. Using the Solow growth model and assuming that the “current'' savings rate, the depreciation rate, the rate of technological progress, and the rate of population growth do not change: Show the short-run effects on the hurricane on K, k, L, Y and y.

Show the process by which each of these variables, and the economy in general, adjust to a new long-run equilibrium

Compare the growth rates of K, k, L, Y, and y in the original (pre-hurricane) case and the new long-run equilibrium

Explain what monetary policy tools may be of help to jumpstart the economy after the hurricane using the following perspectives of the different schools of economic thought:

i. Classics

ii. Neoclassic

iii. Monetarists

iv. Keynesians

v. Austrian

vi. Real business cycle

Exercise 15-7 crawford corporation incurred the following transactions. 1. purchased raw materials on account $53,000. 2. raw materials of $45,200 were requisitioned to the factory. an analysis of the materials requisition slips indicated that $9,400 was classified as indirect materials. 3. factory labor costs incurred were $65,400, of which $50,200 pertained to factory wages payable and $15,200 pertained to employer payroll taxes payable. 4. time tickets indicated that $55,000 was direct labor and $10,400 was indirect labor. 5. manufacturing overhead costs incurred on account were $81,700. 6. depreciation on the company’s office building was $8,100. 7. manufacturing overhead was applied at the rate of 160% of direct labor cost. 8. goods costing $89,400 were completed and transferred to finished goods. 9. finished goods costing $76,000 to manufacture were sold on account for $105,100. journalize the transactions. (credit account titles are automatically indented when amount is entered. do not indent manually.) no. account titles and explanation debit credit (1) (2) (3) (4) (5) (6) (7) (8) (9) (to record the sale) (to record the cost of the sale) click if you would like to show work for this question: open show work