sf ( k )=( +n ) k
Steady State is
k 2 /3=
k =(2)3/ 2 =2.828427
y=2.8284271 /3 =1.414214
c=( 1s ) y =( 10.1 ) 1.414214 =1.272792
MPK=( + n)
1 2 /3
k =( +n)
k 2 /3=3(+ n) =3(0
Tutorial 5 Money and Inflation
Write the quantity equation and explain it.
If inflation rises from 3 to 7 percent, what happens to real and nominal
interest rates according to the Fisher effect?
Explain the roles of monetary and fiscal policy in
1. Financial development is the most important factor for economic growth. Defend this
A financial system is a system, which comprises of financial institutions, borrowers and lenders, and is
responsible for the exchanging of funds.
Tutorial 2C Economic Growth
If submitting this tutorial for marking: deadline is Monday 18 February 4:30pm
In the full Solow model, what determines the steady-state rate of growth of
income per worker?
What data would you need to determine whether a
Tutorial 2b Economic Growth 2B
If submitting this tutorial for marking: deadline is Monday 11 February 4:30pm
(a) What is the golden rule? Why might an economic policymaker choose the
Golden Rule level of capital?
(b) Would a policymaker choose a stead
Tutorial 8 Money & the Banking System
i. How do banks create money?
ii. Why might a banking crisis lead to a fall in the money supply?
iii. How can the central bank avoid a banking crisis?
iv. According to Baumol-Tobin model what determines how often p
Tutorial 6 Consumption
If submitting this tutorial for marking: deadline is Monday 18 March 4:30pm
i. What are Keynes three conjectures about the consumption function?
ii. Briefly describe the evidence that was consistent with
conjectures and the evide