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Econ 252 Midterm #1 Questions with Correct Answers (Grade A+)

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Econ 252 Midterm #1 Questions with Correct Answers (Grade A+)

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Econ 252 Midterm #1 Questions with Correct Answers (Grade A+)

Question 1: capital equation

Answer: kt+1 = kt + It - Dt sf(kt) - dkt

Question 2: law of motion equation

Answer: kt+1 - kt = It - Dt

Question 3: MPK

Answer: (f(k+1)-f(k))/1

Question 4: At

Answer: technology

Question 5: y

Answer: output

Question 6: AtLt

Answer: effective workers

Question 7: capital equation with technology

Answer: sf(kt) - (d + n + g)kt

Question 8: Yt

Answer: F(kt, At, Lt)

Question 9: Lt + 1

Answer: (1+n)Lt

Question 10: At+1

Answer: (1+g)At

Question 11: kt

Answer: (kt/At+It) = yt = f(kt)


Page 1

, Question 12: yt

Answer: Yt/Lt

Question 13: Malthusian Production Function

Answer: Yt = A * F(x, Lt)

Question 14: x (Malthusian)

Answer: land (fixed over time)

Question 15: A (malthusian)

Answer: factor-neutral technology (doesn't grow regularly)

Question 16: nominal GDP

Answer: pxq

Question 17: real GDP

Answer: base year p x q

Question 18: economic growth

Answer: present value-past/past value x 100

Question 19: average real GDP growth rate

Answer: (present value/past value)^1/2 - 1

Question 20: capital-labor ratio

Answer: isolate k

Question 21: output per worker

Answer: y = k*

Question 22: consumption per worker

Answer: c*=(1-s)f(k*)




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