ECON 2400 Study Guide - Midterm Guide: Multiple Choice, Endogenous Growth Theory, Capital Intensity
Document Summary
Please answer all questions in the provided booklet. Section i: multiple choice questions (total marks 32) Each correct multiple choice answer is worth 4 marks. Consider a once and for all increase in the level of a country"s population. 1: assume that output is produced according to the following production function: y = k (el)1 . Suppose that in the solow model output is produced according to. Section ii: short answer questions (total marks 68) Consider a model economy, in which output per worker is produced according to the following production function, yt = kt. The labor force grows at an exogenous rate n per period. This economy saves a constant fraction of its income s, and consumes the rest. Hint: solve for the golden rule level of capital first. (5 marks) (f) assume that the production function is instead, yt = akt (3)
