ASSIGNMENT 3 - Answers
1. Suppose an economy has the following per worker production function
yt = 3k 2 .
The rate of depreciation is 0.15 and the population growth rate is 0.05. Savings is
St = Yt .
(a) Find the steady state values for th
1. Find the rst derivative, with respect to x, for the following:
(a) f (x) = 5 2x
Answer:f (x) = 2
(b) f (x) = 2x + 10x2
Answer:f (x) = 2 + 20x
(c) f (x) = x3
Answer:f (x) = 3x4
2. Suppose an economy has real GDP of $14,000, govern
1. Use the information in the tables above to answer the following questions. You wi
Oranges sold to Public
Oranges sold to JuiceInc
Approaches to calculation GDP
In the following simple example I try to explain why and how negative entries are made for inventory
investment. It is important to remember that only final goods and services are counted in current
GDP, and for a specific period of t
Note: While the example below is different from what we are currently covering in class, the
general idea of making decisions at the margin is applicable.
By making a choice at the margin a firm is able to maximize its profits. Note that
ECN 324 - 003
1. Capital surplus is when there is more GDP than the total consumption. Deficit on the other hand
is when there is less GDP than the total consumption.
2. Primary markets deals with issuing new securities. Secondary markets is where s