ECO322- Mar. 12, 201
dr. Peter Mikek
Balassa-Samuelson Effect: Why are price levels higher in richer countries
There are two sectors: tradable(T) and non-tradable (NT) sector and two countries: Home (h) and foreign
(f). I will measure productivity by MPL
September 30, 2011
Homework #10: Write short answers for questions # 8, 14, 17, 18, 21, 25, 26. Upload your
homework to Moodle by Monday 10am, or bring a printed copy to class on Monday.
PLEASE SEE YOUR CLASS NOTES, SINCE WE COVERED ALL THESE QUEST
PLEASE SEE THE KRUGMAN ARTICLE FOR ANSWERS TO THESE QUESTIONS. THE QUESTIONS
APPEAR IN THE SAME ORDER AS THE TOPICS APPEAR IN THE ARTICLE.
1. Krugman states that financial economists came to believe that
September 7, 2011, Due Friday
1. What is endogenous growth theory?
Rejection of Solow models assumption of exogenous technological change. These theories try to explain
technological advances within the model. Page