Questions from Macroeconomics

Q: Consider the production function: Y = K + 2N a

Consider the production function: Y = K + 2N a. Compute output when K = 10 and N = 20. b. If both capital and labor triple, what happens to output? c. How would you qualify the returns to scale for th...

Q: Consider the production function given in Problem 3. Assume that N

Consider the production function given in Problem 3. Assume that N is constant and equal to 1. Note that if z = xa , then gz ≈ a gx, where gz and gx are the growth rates of z and x (See Appendix 2 at...

Q: Between 1950 and 1973, France, Germany, and Japan all

Between 1950 and 1973, France, Germany, and Japan all experienced growth rates that were at least two percentage points higher than those in the United States. Yet the most important technological adv...

Q: Go to the World Bank’s website (http://data.worldbank

Go to the World Bank’s website (http://data.worldbank.org/ indicator/NY.GDP.PCAP.KD), find the data on GDP per capita (in constant 2010 US$) for China and the euro area for the years 1960, 1980, 2000,...

Q: a. The World Bank reports gross domestic saving rate by country

a. The World Bank reports gross domestic saving rate by country and year. Go to the World Bank website (https://data. worldbank.org/indicator/NY.GNS.ICTR.ZS) and find the most recent saving rates for...

Q: Consider a country with two political parties, Party A and Party

Consider a country with two political parties, Party A and Party B. Party A cares more about unemployment than Party B, In 2018 New Zealand rewrote the charter of its central bank to include high empl...

Q: Assume that money demand takes the form / where Y

Assume that money demand takes the form where Y = 1,000 and r = 0.1. a. Assume that, in the short run, pe is constant and equal to 25%. Calculate the amount of seignorage for each annual rate of mone...

Q: Consider the economy described in Problem 3 and assume that there is

Consider the economy described in Problem 3 and assume that there is a fixed exchange rate, Suppose that financial investors worry that the level of debt is too high and that the government may deval...

Q: The appendix to this chapter shows how data on output, capital

The appendix to this chapter shows how data on output, capital, and labor can be used to construct estimates of the rate of growth of technological progress. We modify that approach in this problem to...

Q: The Cobb-Douglas production function and the steady state. This

The Cobb-Douglas production function and the steady state. This problem is based on the material in the chapter appendix. Suppose that the economy’s production function is given by Y = KαN1 - α and a...