Economics 2125A/B Study Guide - Midterm Guide: Diminishing Returns, Big Mac Index, Unconditional Convergence
28 Feb 2014
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7 true and false 2 marks ea. ** very literal about her answers, if its two marks, need two points ** ** presentation questions are all in true/false ** ** she likes giving e. answers that combine two answers, eliminate incorrect answers first ** ** be sure to know solow ** ex. What curve will shift and what way, maybe why. ** check true/false underline key words (always, must, etc) ** ** we do need to know similarities and differences between solow and harrod-domar model ** ** growth accounting formula, solow formula, harrod-domar, write them down ** -office hours on thursday, last chance for questions . All these questions have been on an exam: briefly explain the concepts of conditional convergence and unconditional convergence . Unconditional convergence: poor countries will grow faster than rich and catch up to the rich. (1 mark) Conditional convergence: poor countries with the same characteristics will catch up to the rich. (1 mark)
