Author: Anonymous

Consider the Romer model. Y = (A LY)1-αKα with α=0.25, L=1000, LY=0.75L. =0.3 (0.25L)0.2A0.5 and = 0.4Y – 0.006K. In the steady state, the growth rate of labor is 1%.  What is the steady-state value of output per worker?

Using the Taylor Rule. Suppose the real equilibrium interest rate is 2%, actual inflation is -2%, target inflation is 2%, and the output gap is 0.5%. What is the nominal interest rate?

If Country M has a capital-labor ratio of 5:1 and Country N has a ratio of 1:3, which good is Country M most likely to export under the Heckscher–Ohlin model?

In a constant-returns Cobb-Douglas economy, output grew by 5%, capital grew by 4%, labor grew by 1%, and the labor share is 0.65. What is the TFP growth rate?

In comparing inequality trends between the U.S. and many European countries, which of the following best explains why inequality has risen more in the U.S.?

Consider a closed-economy with taxes proportional to income.Consumption: C=1000+0.8Yd, where Yd is the disposal income​, the difference between GDP and TaxesInvestment: I=2000-100r Government spending: G = 0.2Y, where Y is the GDP Taxes: T= 0.25Y Money demand: L=0.25Y−500r, where r is in % term  Real money supply: M/P=1250 Solve for the slope of the LM curve in the IS-LM graph.

Efficiency Wage Theory implies that unemployment can persist because:

Figure 15.3See Figure 15.3. The total impedance of this circuit may be made purely resistive by

Ignoring capacitive effects, what is the magnitude of the impedance of a 100 mH coil with an internal resistance of 45 Ω in parallel with a 4700 Ω resistor at a frequency of 500 Hz?

THE CURRENT IN THE CIRCUIT BELOW IS