ECON 100B - Fall 2005 - Wood - Midterm 1

# ECON 100B - Fall 2005 - Wood - Midterm 1 - Name: _ (Last...

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Fall 2005 (Solow Growth Model) 1 Name: ____________________ (Last name, first name) SID: ____________________ Lecture (1 or 2): ____________________ UGBA 101B Macroeconomic Analysis for Business Decisions Dr. Steven Wood Fall 2005 Exam #1 Please sign the following oath: The answers on this test are entirely my own work. I neither gave nor received any aid while taking this test. I will not discuss the questions on this test until after 5:00 p.m. on September 27, 2005. ______________________ Signature Any test turned in without a signature indicating that you have taken this oath will be assigned a grade of zero. Graph Instructions When drawing diagrams, the following rules apply: a. Completely , clearly and accurately label all axis, lines, curves, and equilibrium points. b. The original diagram and equilibrium points MUST be drawn in black. c. The first shift of any line(s) and the new equilibrium points MUST be drawn in red. d. Any subsequent shifts in curves and new equilibrium points MUST be drawn in another color, preferably blue and then green. Do NOT open this test until instructed to do so.

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Fall 2005 (Solow Growth Model) 2 A. Multiple Choice Questions . Circle the letter corresponding to the best answer. (30 points.) 1. Suppose a war destroys half of the capital stock. Now, all of the following are true EXCEPT: a. Economic growth depends on the distance to the steady state. b. Economic growth is greater than the labor force growth rate. c. Economic growth will be lower in the new steady state. d. The time to converge to the steady state will depend on the shape of the production function. 2. Income per worker in Ethiopia is 1/35 of US income per worker in the U.S. According to the principle of conditional convergence: a. Ethiopia will grow faster than the US in the future since it is poorer. b.
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## This note was uploaded on 07/03/2011 for the course ECON 100B taught by Professor Wood during the Spring '08 term at Berkeley.

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ECON 100B - Fall 2005 - Wood - Midterm 1 - Name: _ (Last...

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