ECF2331 Lecture Notes - Lecture 11: Monetary Policy, Fiscal Policy, Monetary Base
21 Jun 2019
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Long answer test (10%: mid-semester test (25%) Final exam (60%: 20 multiple choice questions of 1 mark each, 5 mcqs of 2 marks each, 5 other questions of 6 marks each. For numerical questions a complete answer is one with a clear description of all the steps involved. For figure based analytical questions draw the figure carefully by labelling the axes and lines clearly, and the accompanying explanation should refer to the figure. Week 11: revision: the sources of economic growth. Y/y = a/a + ak * k/k + an * n/n: solow-swan model - steady state sf(k) = (n + d)k, (steps) (figure) next slide, shifts/determinants of steady state levels: population, savings rate, productivity, endogenous growth theory. Y/y = sa d: new production function: y = ak, saving rate affects the growth rate (unlike in solow): higher capital formation stimulates investment in human capital and r&d, government policies: savings, but mainly productivity improvements (r&d)
