Questions from Macroeconomics

Q: Suppose an economy begins in steady state and is characterized by the

Suppose an economy begins in steady state and is characterized by the following parameter values:

Q: By manipulating the equations of the Solow model mathematically, it is

By manipulating the equations of the Solow model mathematically, it is possible to make more precise quantitative statements about the behavior of growth rates over time. For example, one way of quant...

Q: Consider a Solow model where the production function no longer exhibits diminishing

Consider a Solow model where the production function no longer exhibits diminishing returns to capital accumulation. This is not particularly realistic, for reasons discussed in Chapter 4. But it is i...

Q: One explanation for China’s rapid economic growth during the past several decades

One explanation for China’s rapid economic growth during the past several decades is its expansion of policies that encourage “technology transfer.” By this, we mean policies— such as opening up to in...

Q: Download the file snapshots.pdf from web.stanford.

Download the file snapshots.pdf from web.stanford.edu/chadj/snapshots.html and answer the following. (At the moment, the latest year in the data file is 2014. Over time, this year will advance, so ple...

Q: Consider a onetime change in government policy that immediately and permanently increases

Consider a onetime change in government policy that immediately and permanently increases the level of the labor force in an economy (such as a more generous immigration policy). In particular, suppos...

Q: Consider a Solow economy that begins with a capital stock equal to

Consider a Solow economy that begins with a capital stock equal to $300 billion, and suppose its steady- state level of capital is $500 billion. To its pleasant surprise, the economy receives a genero...

Q: Search the FRED database for the “investment share of GDP”

Search the FRED database for the “investment share of GDP” and one of the first links to appear is for “gross private domestic investment.” (For help with using the FRED data, refer back to the case s...

Q: Suppose an economy begins in steady state. By what proportion does

Suppose an economy begins in steady state. By what proportion does per capita GDP change in the long run in response to each of the following changes? (a) The investment rate doubles. (b) The deprecia...

Q: (a) Use the production function in equation (5.

(a) Use the production function in equation (5.6) and the rules for computing growth rates from page 53 of Chapter 3 to write the growth rate of per capita GDP as a function of the growth rate of the...