Economics 10b Study Guide - Final Guide: New Keynesian Economics, Market Clearing, Menu Cost

• School: Harvard University
• Department: Economics
• Course: Economics 10b
• Professor: All

Document Summary

Please use a separate blue book for each question and write the. Question number on the front of the blue book. Please put your exam number on each book. Please do not write your name on your blue books. Barro questions (7. 5 minutes each, total of 60 minutes) 1960s, the regression coefficient on the lagged log of real per capita gdp is close to zero. This result conflicts with the neoclassical growth model"s prediction of convergence: for 25 countries with data since 1870, the cross-sectional standard deviation of the log of real per capita gdp shows little change through 2009. Some are true/false/uncertain and are explicitly denoted as such. The quality of your explanation determines your grade: true/false/uncertain. In the neoclassical growth model with endogenous labor, a temporary increase in government expenditures leads to a temporary in- crease in output, labor and investment: explain what the the employment-lottery model is.