midterm.07.questions - Eco 402a NAME_ Mid-Term Examination...

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Eco 402a Prof. J. Nilsen NAME_______________________________________________ 1 Mid-Term Examination November 12 2007 True/False/Uncertain 6 points each. Credit will be given mainly on the strength of the logic justifying your response. Limit your answer to one or two sentences. 1. “The X model makes assumptions that simplify too much but the predictions seem to be realistic. It is a bad model.” 2. Absolute convergence in growth rates is observed empirically. 3. Saving is not important in the overlapping generations model since an individual lives only two periods.
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Eco 402a Prof. J. Nilsen NAME_______________________________________________ 2 4. A key characteristic of the endogenous growth model is that labor is rival, that is it can only be used in one sector at a time. 5. According to Milton Friedman, an individual seeks a constant marginal utility of consumption over his or her lifetime. 6. The golden rule level of capital is where the level of capital is minimized.
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This note was uploaded on 04/04/2009 for the course ECONOMICS 402 taught by Professor N during the Spring '09 term at American University in Bulgaria.

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midterm.07.questions - Eco 402a NAME_ Mid-Term Examination...

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