test2sol

test2sol - TEST 2: Macroeconomic Theory Please answer the...

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Please answer the following questions. Be BRIEF and only write on the space provided. No type of ±external help². You have 75 minutes to work on your test. NAME: Taxes Externalities Asymmetric Information Market Incompleteness Bounded Rationality of Agents 2. (1 point) Enumerate Kaldor³s stylized growth facts. The average growth of real GDP per worker has been roughly constant at 1.9% The share of income devoted to capital and income show no trend. Output per worker and capital per worker grow at same rate hence capital over output is relatively constant over time. Interest rate does not show trend 3. (1 point) What do we know about growth of per capita income BEFORE 1800s? There was only little growth and the world was in Malthusian trap, i.e. increase in technology only translate into increase in world population. 1. (1 point) What does Growth Accounting tell us about the growth experience of East Asian countries? Most of miraculous growth in East Asia was due to TFP growth rather than capital accu- mulation. 5. (1 point) Enumerate FOUR possible reasons for the productivity slowdown. 1
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test2sol - TEST 2: Macroeconomic Theory Please answer the...

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