Suppose that there exist an investor with initial endowement W0
w0
20000
The interest rate is r
r
0.2
The investment opportunity curve is determined by the function g
c1=g(c0)=a*(w0-c0)^0.5
a
240
The indefference curve is determined by the following equat
Due to the. Ecuadore have experienced hyperinflation . Hyperinflation destroyed Ecuadors
economy in the way of demolishing the exchange rates, wages and lead to an overall economic
destabilization. In the 2000 the exchange rate was 25,000 sucres (previous
20 January 2014
Macroeconomic Analysis, Spring 2014
Tutorial #1 - Answer Key
1. Express the growth rate of y in terms of the growth rates of k; l, and
m for the following cases. Assume
is some arbitrary constant.
(a) y = k
(b) y = k=m
(c) y = k= (lm)
(d)
1 March 2014
Macroeconomic Analysis, Spring 2014
Tutorial #4 - Answer Key
1. Consider the real business cycle model of perfect competition and clearing markets. Trace the eects of a temporary positive technology shock on the
economy (employment, output, c
Macroeconomic Analysis, Spring 2014
Tutorial #3 Answer Key
1. Explain the dierences in exogenous and endogenous technical progress.
Why is such distinction important?
Exogenous means from
outsidethe model, it is given and unexplained. In exogenous
growth
Macroeconomic Analysis, Spring 2014
Tutorial #2 - Answer Key
1. The golden rule. Consider the steady state of the Solow model without
technological progress.
(a) Provide an expression for the steady state level of consumption per
worker, c . Explain how c
MONEY, CREDIT, AND
BANKING LECTURE
The Economic Effects of Technological Progress:
Evidence from the Banking Industry
ALLEN N. BERGER
This paper examines technological progress and its effects in the banking
industry. Banks are intensive users of both IT