YOUR NAME YOUR PERM NUMBER ECON 136A Quiz/ Homework #4 Chapter 6
Using the present value tables in your textbook, or a financial calculator which you plan to use in the future exams, please compute the following: NOTE: Use any piece of paper. You only nee
Applying the Solow
Growth Model
Topics
Explaining differences in growth rates
across countries
The principle of transition dynamics
The limitations of capital accumulation
as an explanation of economic growth
Solving Mathematically for the
Steady State
The Solow Growth Model
Topics
Adding accumulation of capital to
production model
A growth path for GDP
Steady state capital and GDP
The Solow Growth Model:
Developed in the mid-1950s by Robert
Solow of MIT
The basis for the Nobel Prize he received
i
Analyzing the Production
Model
Topics
Using the model to explain differences
in GDP per capita across countries
Differences in total factor productivity
Per Capita vs Per Worker
Per capita = per person
Per worker = per member of the labor
force.
In t
Gross Domestic Product
Production of U.S. Economy
in 2013
22 million pairs of shoes
3 million cars
31 billion apples
How to aggregate into one number?
Topics
Definition of GDP
Three ways to measure GDP
National income identity
Issues with GDP
Measuring th
The Romer Model of Economic Growth
Topics
Incorporating new ideas in Solow growth
model
Result is sustained growth
Growth Accounting
Key addition to Solow model
Some workers produce output
Other workers are researchers
Researchers produce ideas
Ide
An Overview of
Economic Growth
Topics
Some facts about economic growth
Some tools used in studying economic
growth
Growth rates
Ratio scale
The Great Divergence
The recent era of increased difference in
standards of living across countries.
Before
Price Indexes
Topics
Comparing GDP across time
Prices vary with time
Real and nominal GDP
GDP deflator
Comparing GDP across countries
Exchange rates
Price indexes
A GDP Reminder
Final goods in year 1:
GDP:
The Issue
Two years: year 1 and 2
Final
Economics 101
Intermediate Macroeconomic Theory
Professor Kelly Bedard
Textbook
Macroeconomics: Third Edition
Charles I. Jones
Course Overview
Part 1. The Long Run
Chapters 1 - 8
Part 2: The Short Run
Chapters 9 14
Part 3: International
Chapters 19-20
Exa
The Economics of Ideas
Why Is Productivity Higher
Today?
Partly higher capital/labor ratios
But also a series of inventions in18th
and 19th centuries
A Partial List
Refrigeration1748
Steam Engine1765
Concrete1824
Railway1830
Telegraph1835
Camera1839
Ant
Chapter
What is an income statement?
Tells what happened;
For a STATED PERIOD;
Another way to think of it is retained earnings for this period
Transaction based.
Something has to actually HAPPEN first
Can only purchase goodwill. But do you think that
MULTIPLE STEP FORMAT SUMMARY: Revenues COS Gross Profit Operating expenses* Operating Income Non-operating* Income before income taxes Income taxes Income from continuing operations Discontinued operations Operations, net of tax of $xxx Gain/ Loss on disp
Learning Objectives
Learning Objectives
Balance
Sheet &
Statement of
Cash Flows
Slide
5-1
Chapter
5
UCSB, Anderson
1.
2.
3.
4.
5.
6.
7.
8.
9.
Slide
5-2
Balance Sheet Basics
What is a balance sheet?
What is a balance sheet?
Tells where the entity stands f
Learning Objectives
Accounting & The Time Value of Money
Chapter
6
Slide 4-2
Identify accounting topics where time value of money is relevant; Distinguish between simple and compound interest; Learn how to use compound interest tables (NOTE we will also c
ECON 136A, Mon & Weds, 9:30-10:45am, North Hall 1110
Spring quarter 2014
Syllabus
Instructor: Bob Anderson
Office Hours (NH3039)
Email: [email protected]
Mon & Weds
7-7:55am
Phone: (805)493-0492
AND Monday
10:45-11:45am
Instructor Availability: The i
A Model of Production
Topics
A simple model of the macro economy
The Cobb-Douglas production function
Assumptions
Single, closed economy
One consumption good, Y
Two inputs
Labor, L
Capital, K
Production function
Cobb-Douglas
Bar over letter indi