ECO2143 Macroeconomic Theory II
First mid-term examination: January 28 2013
University of Ottawa
Professor: Louis Hotte
Time allotted: 1h 20min
Attention: Not all questionnaires are the same. This is questionnaire A. On the answer sheet, you
must indicate
ECO2143 Macroeconomic Theory II
2nd mid-term examination: March 4 2013
University of Ottawa
Professor: Louis Hotte
Time allotted: 1h 20min
Attention: Not all questionnaires are the same. This is questionnaire A. On the answer sheet, you
must indicate the
Name: _
Student Number: _
ECO 2144C (Microeconomic Theory I)
Midterm Exam 2
Friday, March 27, 2015
Time to complete the midterm: 80 minutes
Instructions: Fill in your name/initials and student number on every page of this
questionnaire. There are 22 quest
Governance and Growth
Reference: Weil (2013) chapter 12
What are the potential links between government policies and growth?
Effects of government policies on factor accumulation: physical capital, human capital, population
growth
Impact of various polici
Expectations
Reference: Blanchard-Johnson (2015) chapter 19
Two important concepts:
Distinction between nominal and real interest rates
Expected present discounted value
Nominal and real interest rates
Nominal interest rate, it: interest rate in terms of
Human capital
Reference: Weil (2013) chapter 6
Human capital two dimensions:
Health
Education Skills of the labour force
Health important facts:
Positive correlation between income per capita an several indicators of health of the population
High income l
ECO 2143 Suggested Problems
1. Suppose the production function is as follows: Y = AK 1 2 L1 2 . The saving rate, the
depreciation rate and the growth rate of population are, respectively, s , and n .
a. Derive an expression for the stock of capital per wo
Open Economy and Growth
Reference: Weil (2013) chapter 11
Openness three dimensions:
Trade of goods and services
Capital flows
Substantial growth of international trade over the last 150 years
Large increase in the level of total exports as a share of wor
Efficiency
Reference: Weil (2013) chapter 10
Efficiency: Effectiveness with which we combine production factors to produce
goods and services
Component of productivity that is not explained by technology
To what extent are differences in productivity acro
Stabilization Policies
Reference: Blanchard-Johnson (2015) chapter 24, Mankiw-Scarth (2011) chapter 15
How active should the government be in terms of stabilization policies?
Rules versus discretion in conducting economic policy?
Focus mainly on budgetary
Suggested problems 1 - Solutions
1. Suppose the production function is as follows: Y = AK L . The saving rate, the depreciation rate and
the growth rate of population are, respectively, s , and n .
12 12
a. Derive an expression for the stock of capital pe
Additional Review Questions
a
1. Consider an economy with the following production function yt = Akt , where yt is
production per worker at time t, kt is capital per worker at time t and A is the level of
the technology. The saving rate is equal to s, the
ECO 2143 Suggested Problems # 3 Solution
1. Consider the following production function: Y = AK ( hL )1 , where h is the constant level of
human capital per worker. The rate of investment in physical capital is s and the rate of
depreciation is . There is
Name: _
Student Number: _
ECO 2144C (Microeconomic Theory I)
Midterm Exam 1
Wednesday, February 25, 2015
Time to complete the exam: 80 minutes
Total points: 80
Instructions: Please fill in your name/initials and student number on every page of this
questi
ECO2144 NOTES
CHAPTER 1
When we look at how countries have developed over time, a second set of mysteries emerges.
Comparing wealthy countries today to their own history, there is once again an immense difference in
living standards. This growth in materi
NAME AND ID:
11. PROBLEM
You must answer the following questions within the space provided. Your answers
must be accompanied with clear explanations. Graphs and equations without empla-
nations will not get you far.
Growth accounting (30 points) As seen i
4 l A
NAME AND ID:
II. PROBLEM
You must answer the following questions strictly within the space provided. Your
answers must be accompanied with clear explanations. Graphs and equations without
explanations will not get you far.
The Solow model (60 points
ECO2143 Macroeconomic Theory II
2nd mid-term examination: March 4 2013
University of Ottawa
Professor: Louis Hotte
Time allotted: 1h 20min
Attention: Not all questionnaires are the same. This is questionnaire A. On the answer sheet, you
must indicate the
ECO 2143 Suggested Problems # 4
1. Suppose that the production function is y = k , where y and k denote production per unit
of effective labor and capital per unit of effective labor, respectively. Suppose also that the
saving rate, the depreciation rate,
ECO 2143 Suggested Problems # 3
1. Consider the following production function: Y = AK ( hL )1 , where h is the constant
level of human capital per worker. The rate of investment in physical capital is s and
the rate of depreciation is . There is no popula
ECO 2143 Suggested Problems # 5
1. Suppose that Tt , Gt and Bt denote, respectively, government revenues, government
expenditures (excluding interests on the public debt) and the value of the debt at time
t. The interest rate on the debt is equal to r and
Technological progress and growth
Reference: Weil (2013) chapter 8
What determines the rate of technological progress?
What determines the speed of diffusion of technological progress from advanced countries
to developing countries?
A simple model of tech
Economic Growth: A few Basic Facts
References: Weil (2013) chapter 1; Blanchard-Johnson (2015) chapter 15
Large differences in income per capita across countries
Growth rates of income per capita vary significantly across countries and over
time
Large inc
ECO2143 Macroeconomic Theory II
First mid-term examination: January 28 2013
University of Ottawa
Professor: Louis Hotte
Time allotted: 1h 20min
Attention: Not all questionnaires are the same. This is questionnaire A. On the answer sheet, you
must indicate
ECO2143 Macroeconomic Theory II
First mid-term examination: January 30th, 2012
University of Ottawa
Professor: Louis Hotte
Time allotted: 1h 20min
Attention: Not all questionnaires are the same. This is questionnaire A. On the answer sheet, you
must indic
ECO2143 Macroeconomic Theory II
First mid-term examination: January 31st, 2011
University of Ottawa
Professor: Louis Hotte
Time allotted: 1h 20min
Attention: Not all questionnaires are the same. This is questionnaire A. On the answer sheet, you
must indic
ECO2143 Macroeconomic Theory II
First mid-term examination: February 1st, 2010
University of Ottawa
Professor: Louis Hotte
Time allotted: 1h 20min
Attention: Not all questionnaires are the same. This is questionnaire A. On the answer sheet, you
must indic
ECO2143 Macroeconomic Theory II
First mid-term examination: February 4th, 2008
University of Ottawa
Professor: Louis Hotte
Time allowed: 1h 20min
Attention: Not all questionnaires are the same. This is questionnaire A. On the answer sheet, you
must indica
Chapter 2
A framework for the
analysis of long-term
growth
A PARABLE
2
Kim has a job for you
He
is puzzled:
Why are SKs so much richer than NKs?
Kim,
the friendly NK president, hires
you to find out.
3
First task
Estimate magnitude of difference.
Measu