{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Problem+Set+_2+_Fall+2011_

# Problem+Set+_2+_Fall+2011_ - Name SID GSI Econ 100B...

This preview shows pages 1–3. Sign up to view the full content.

Name: ____________________________ SID : ____________________________ GSI: ____________________________ Econ 100B Macroeconomic Analysis Professor Steven Wood Fall 2011 Problem Set #2 Due: September 27, 2011 (in class before 3:50:01 p.m.) Place your completed problem set in the box near the entrance. Please sign the following oath: The answers on this problem set are entirely my own work. I neither copied from the work of others nor allowed others to copy from my work. _______________________________________ Signature Any problem set turned in without a signature will be assigned a grade of zero. Problem Set Instructions 1. You MUST complete your problem set on this template. 2. Graphs and equations MAY be drawn by hand. When drawing diagrams, clearly and accurately label all axis, lines, curves, and equilibrium points. 3. Explanations MUST be word-processed. Your explanations should be succinct and to the point. Problem Set #2 (Fall 2011) 1/5

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

View Full Document
A. Multiple Choice Questions (15 points) . Circle the letter corresponding to the best answer. (3 points each.) 1. Suppose that total factor productivity is constant, the capital stock is growing at 1% per year, and the output elasticity with respect to capital is 0.4. How fast will the economy be growing when it is at its steady state? a. 0.4% b. 0.6% c. 1.0% d. 1.4% e. Indeterminate. 2. Low-income countries tend to have faster labor force growth rates than high-income countries. Compared to a situation where the labor force growth rates were identical there would now be: 3. In microeconomic theory the real wage rate is positively related to the amount of capital each worker has to work with. Given this, what happens to the real wage rate in an economy described by the Solow Growth Model if an earthquake destroys half of the capital stock?
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### Page1 / 5

Problem+Set+_2+_Fall+2011_ - Name SID GSI Econ 100B...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online