inter macro

The formula for steady-state consumption per c* as a function of output per worker and investment per worker is:

• c*= f(k*)-delta k*

• c*= f(k*)+ delta k

• c*= f(k*)/ delta K*

• c*= k*- delta f(k)*

In a supply model, price and quantity are endogenous & income and cost are exogenous

• True

• False

GDP deflator enables economists to make adjustments for changes in

• quality

• price

• output

• Population

The market basket used to measure price changes is

• Changing in both the GDP deflator and the CPI

• Fixed in the CPI but changing in the GDP deflator

• Fixed in both the GDP deflator and the CPI

• Fixed in the GDP deflator but changing in the CPI

The value of net exports is also the value of

• net investment

• net saving

• national saving

• difference of national saving and domestic investment

If a small open economy wishes to reduce a trade deficit, which policy action will be successful in achieving this goal

• Increase taxes

• Increase government spending

• Increasing investment tax credits

• imposing protectionist trade policies

which statement is true according to the solow growth model

• A higher saving rate results in faster, sustained growth

• A higher saving rate results in temporarily faster growth

• The steady-state level of capital per worker is determined by the technology level
• The steady-state level of capital per worker is determined by the exchange rate

In the solow growth model, which variable is endogenous

• Saving rate

• government spending

• Depreciation rate

• Output

In the solow model with population growth but no technological progress when the economy finds itself at golden rule- steady state, the marginal product of capital minus the rate of depreciation will equal

• Output per worker

• Saving rate

• Population growth rate

• 0

the rate of augmenting technological progress is the growth rate of

• Capital

• Output

• labor

• Efficiency of labor