Q: Why are the Rule of 70 and the ratio scale useful tools
Why are the Rule of 70 and the ratio scale useful tools? How do they work together?
See AnswerQ: What is the purpose of macroeconomic models? How can a model
What is the purpose of macroeconomic models? How can a model of ice cream production be used to explain 50-fold income differences across countries?
See AnswerQ: What is the purpose of macroeconomic models? How can a model
What is the purpose of macroeconomic models? How can a model of ice cream production be used to explain 50-fold income differences across countries?
See AnswerQ: In exercise 6, the correct way to compute the average growth
In exercise 6, the correct way to compute the average growth rate is to apply equation (3.9). An alternative— but incorrect— way is to take the percentage change divided by the number of years: for ex...
See AnswerQ: How does the national income identity show up in the ice cream
How does the national income identity show up in the ice cream model?
See AnswerQ: Look back at Table 4.3. Why do such large
Look back at Table 4.3. Why do such large differences in capital lead to relatively small differences in predicted GDP across countries? Table 4.3:
See AnswerQ: What is the mechanism in the Solow model that generates growth?
What is the mechanism in the Solow model that generates growth? Why is this an appealing mechanism? Why does it fail to deliver economic growth in the long run?
See AnswerQ: What is the solution of the Solow model for consumption per person
What is the solution of the Solow model for consumption per person in the steady state, c∗ ≡ C ∗/L∗? How does each parameter in the solution affect c*, and why?
See AnswerQ: The Solow model implies that differences in total factor productivity are even
The Solow model implies that differences in total factor productivity are even more important in explaining differences in income across countries than the production model of Chapter 4 suggested. Why...
See AnswerQ: What is the principle of transition dynamics? Why does the Solow
What is the principle of transition dynamics? Why does the Solow model lead to this principle, and why is it useful?
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