Questions from Macroeconomics

Q: Add another line, period 6, to Table 5.1

Add another line, period 6, to Table 5.1. What are the values of K6, I6,

Q: What is the economic meaning of the vertical gap between the investment

What is the economic meaning of the vertical gap between the investment curve and the depreciation curve in the Solow diagram?

Q: What determines whether a curve shifts in the Solow diagram? Make

What determines whether a curve shifts in the Solow diagram? Make a list of the parameters of the Solow model, and state whether a change in each parameter shifts a curve (which one?) or is simply a m...

Q: Suppose the production function at the core of our model is given

Suppose the production function at the core of our model is given by Y = AK 3/4L 1/4 (that is, assume the exponents on capital and labor are 3/4 and 1/4 rather than 1/3 and 2/3). (a) Create a new ve...

Q: In 2014, Ethiopia had a per capita income of $1

In 2014, Ethiopia had a per capita income of $1,500, about $4 per day. Compute per capita income in Ethiopia for the year 2050 assuming average annual growth is (a) 1% per year. (b) 2% per year. (c) 4...

Q: Explain whether the following goods are rivalrous or nonrivalrous: (

Explain whether the following goods are rivalrous or nonrivalrous: (a) Beethoven’s Fifth Symphony, (b) a portable music player, (c) Monet’s painting Water Lilies, (d) the method of public key cryptogr...

Q: The table below reports per capita GDP and capital per person in

The table below reports per capita GDP and capital per person in the year 2014 for 10 countries. Your task is to fill in the missing columns of the table. (a) Given the values in columns 1 and 2, fill...

Q: Repeat exercise 5, but this time assume the production function is

Repeat exercise 5, but this time assume the production function is given by Y =

Q: Read the article on institutions by Mancur Olson, cited in footnote

Read the article on institutions by Mancur Olson, cited in footnote 10. (You may be able to find it on the web by typing the author’s name and a few words from the title into Google Scholar.) The last...

Q: Suppose a country enacts a tax policy that discourages investment, and

Suppose a country enacts a tax policy that discourages investment, and the policy reduces the investment rate immediately and permanently from