Some of the things that you must know for the midterm
1
Economic Growth (Chapters 7 and 8)
•
#$
5
0Ð5Ñ
5
œ=
Ð81 Ñ
• the definitions of the symbols and how to explain this equation in words
• the diagram
and how to interpret it
• effects of changes in parameters of the model
• why the
=
5
line slopes downward and the implications of this
• definition of steady state and how to find steadystate values of
and
5ßCß

• definition (
) and interpretation ( maximized) of golden rule point
QT œ 81

5
$
• how to find
5
K
• how to find
=
K
• US saving rate issues
• Convergence or not?
Aggregate Demand – Closed Economy (Chapters
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 Spring '08
 Staff
 Microeconomics, Macroeconomics, Inflation, Keynesian economics, ADAS model, golden rule point

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