Lecture 8 Growth and Aggregate Production Function

Question 1

rule of 70

Answer 1

years to double = 70/g

Question 2

aggregate production funciton

Answer 2

rGDP = T*f(K,L,HC)

Question 3

per capita GDP

Answer 3

rGDP/population

Question 4

per worker production function

Answer 4

rGDP/L = T*f(K/L, 1, HC/L)
y = T*f(k,h)

Question 5

rule of motion

Answer 5

K(t+1) = Kt + SYt-dKt

Question 6

steady state equilibrium

Answer 6

no growth

y = (d/s)*k