Economics 10b Study Guide - Final Guide: Briey, Procyclical And Countercyclical, Independent And Identically Distributed Random Variables

• 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. True, false, or partially true (40 minutes): please explain whether the following statements are true, false, or partially true. Optimal investment problem. (20 minutes) (cid:149) every period you draw a cost (distributed uniformly between -1 and: for completing a project. Note that the support of goes from -1 to. Barro questions (7. 5 minutes each, total of 60 minutes) Explain briefly (but your explanation determines your grade): in long-term data, average real rates of return on stocks exceed average growth rates of real. Some are true/false/uncertain and are explicitly de- noted as such. The quality of your explanation determines your grade: true/false/uncertain. In order to match the data, the rbc model requires a large elasticity of labor supply.