chapter 6
3. Solows Model of Exogenous Growth
a) The Representative Consumer
b) The Representative Firm
c) Competitive Equilibrium
d) Steady-State Growth
i) The Steady-State Path
ii) Adjustment Towards Equilibrium
e) Savings and Growth
i) Equilibrium Effe
Some More Practice Problems for Midterm 2
Note: There will not be any solution posted for these practice problems.
Question 1. Consumer Behaviour
Consider a consumer whose preferences are represented by the utility function
U (C; l) = ln (C) + 5l
Assume t
Economics 2220A
570
Fall 2014
Intermediate Economics I
Professor: Brandon Malloy
Office: W056
Email: [email protected]
Office Hours: Wed, 10:30-11:30
Ext:
Class Times and Location(s):
Monday: 9:30-11:00am, in LH103
Wednesday: 9:00-10:30am, in W166
Course Des
Lecture 3 Sept. 19
Nominal GDP and Real GDP
Year 1=50+80+130
Year 2=292
GDP growth rate=(year2-year1)/year1=(year2/year1-1)X100
Why growth rate are different
-the relative price are different
-price of laptops become relative cheaper
-use year 2 as base y
Lecture 5 Sept. 26
U(c,l)=lnC+2lnl
First derivative will be >0
Second derivative will be <0
2=lnC+2lnl
This is the indifference curve that gives the utility equals to 2
MRS(c,l)=-slope IC
Income tax, HST, sales tax will be depended on the actions of the c
Mar 13
1. Strategic Complementarities: The marginal benefit/product of
an individual depends on the choices and economic activity of
other individuals.
dot/Jae, F/ N
)kel
gilt/(210
was
,2 l~ol
\1: glc N
double ll I N
oz 1
32 (2t) czh)
= 2-2L~ at
Assumpt
Lecture 2 Sept. 14
Profits from producers: after tax
Calculating GDP
Product approach(value added approach)
-value added coconut producer=20
-restaurant=30-12=18
-government(providing services,not trading in the market)=5.5
-together GDP is 43.5
Expendi
Lecture 1 Sept.12
What is macro?
-deals with different policies
-overall level of economic activity
This course
Develop tools is more difficult(formulate a model-system equations)
What is a model
-a virtual representation of the real world
-has to be simp
Lecture 4
Sept. 21
A one-period macro model: consumer behaviour
Static model: has only one time period
Consumer behaviour
-work and earn income
-have less leisure time
Goods in the economy
Monotonicity
More is preferred to less
Difference can not be upwar
Brief tutorial. Consider the data given in columns C and D.
Cell G6 computes the standard deviation of variable y from column C, using the Excel function
STDEV. If you double click on cell G6, you will see the formula used to compute the standard
deviatio
1
Chapters 1 and 2: Measurement
1.1
Measurement: Growth Rates
Consider the following economic facts: (i) Per capita real GDP in Krakozhia in year 2000
was 10; 000 Krakozhian dollars. (ii) Per capita real GDP in Krakozhia in year 2005 was
11; 876:31: Krako
Chapter 1
Problems
1. Product accounting adds up value added by all producers. The wheat
producer has no intermediate inputs and produces 3 million tonnes at
$30/tonne for $90 million. The bread producer produces 100 million loaves at
$3.50/loaf for $350
Chapter 5
1. Although we often think about the negative externalities of congestion and
pollution in cities, there may also be some positive externalities. A
concentrated population is better able to support the arts, professional sports,
etc; cities typi
Chapter 3
1.
a) Although the correlation coefficient does not appear to be very large, x and
y are positively correlated.
b) For this part of the problem, we need to draw the data in the form of two
time series plots in Figure 3.1b.3. We know from our key
Chapter 4
1.
Consider the two hypothetical indifference curves in Figure 4.1. Point A is
on both indifference curves, I1 and I2. By construction, the consumer is
indifferent between A and B, as both points are on I2. In like fashion, the
consumer is indif
Solow Model and the Golden Rule
Consider the standard Solow model. Population grows exogenously over time: N 0 = (1+n)N
where N 0 is population tomorrow, N is current population and n > 0 is the growth rate of
population.
Consumers have one unit of time w