S07EX11 - Econ 365 Spring 2007 MIDTERM 1(Total Points 100 M...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Econ 365 M. Muniagurria Spring 2007 MIDTERM 1 (Total Points: 100) (I) Basic Solow Model with population growth (without technological change) (The relevant equations are given in the attached handout) (1) (6 pts) Write down the equations of for : - output per worker as a function of the capital per worker - change of capital per worker as a function of capital per worker. (2) (10) What are the conditions that need to be satisfied along a balanced growth path (BGP) for the original system (or the steady state of the modified system in per worker variables)? Draw a diagram to identify the level of capital per worker along a BGP. (3) (6 pts) What are the growth rates of output per worker and total output at the BGP? (4) (6) Suppose country A and country B are identical in every aspect except that country A has a higher savings rate than country B. Can you tell whether consumption per worker along the BGP will be higher in county A than in country B? Justify (no need to draw a diagram)
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern