Macro Interim

Question 1

National Income Identity (Y = C + I + G + NX)

Answer 1

GDP = Consumption + Investment + Government Purchase + (exports-imports)

Question 2

GDP = Consumption + Investment + Government Purchase + (exports-imports)

Answer 2

National Income Identity (Y = C + I + G + NX)

Question 3

Nominal GDP

Answer 3

(price level)(real GDP)

Question 4

(price level)(real GDP)

Answer 4

Nominal GDP

Question 5

L-Index

Answer 5

Computation in Change of Real GDP with initial prices

Question 6

Computation in Change of Real GDP with initial prices

Answer 6

L-Index

Question 7

P -Index

Answer 7

Computation in Change of Real GDP with final prices

Question 8

Computation in Change of Real GDP with final prices

Answer 8

P -Index

Question 9

Chain Weighting

Answer 9

average of L-Index and P-Index

Question 10

average of L-Index and P-Index

Answer 10

Chain Weighting

Question 11

Growth Rate (percentage change per capita)

Answer 11

(Y_t+1 - Y_t ) / Y_t

Question 12

(Y_t+1 - Y_t ) / Y_t

Answer 12

Growth Rate (percentage change per capita)

Question 13

Level of Per Capital Income

Answer 13

Y_(t+1) = Yt(1+g)

Question 14

Y_(t+1) = Y_t(1+g)

Answer 14

Level of Per Capita Income

Question 15

Constant Growth Rule

Answer 15

Y_t = Y_o(1+g)^t

Question 16

Y_t = Y_o(1+g)^t

Answer 16

Constant Growth Rate

Question 17

Standard Scale when graphed looks like

Answer 17

exponential growth

Question 18

Ratio Scale when graphed looks like

Answer 18

a straight line, linear.

Question 19

Computation of Growth Rate

Answer 19

g(constant) = (Y_t / Y_o)^1/t - 1

Question 20

g(constant) = (Y_t / Y_o)^1/t​ - 1

Answer 20

Computing growth rate

Question 21

Growth rate of ratio: z =x/y

Answer 21

g_z = g_x - g_y

Question 22

g_z = g_x - g_y

Answer 22

Growth rate of ratio: z = x/y

Question 23

Growth rate of ratio: z =(x)(y)

Answer 23

g_z = g_x + g_y

Question 24

g_z = g_x + g_y

Answer 24

Growth rate of ratio: z =(x)(y)

Question 25

Growth rate of ratio: z = x^a

Answer 25

g_z = (a)(g_x)

Question 26

g_z = (a)(g_x)

Answer 26

Growth rate of ratio: z = x^a

Question 27

Production Function: **K = machine; L = workers**

Answer 27

Y = F(K, L) = A(K^1/3)(L^2/3)

Question 28

Y = F(K, L) = A(K^1/3)(L^2/3)

Answer 28

Production Function: **K****= machine; L = workers**

Question 29

Paramter

Answer 29

Input that is generally fixed over time

Question 30

Input that is generally fixed over time

Answer 30

Paramter

Question 31

Exogenous Variable

Answer 31

**_INPUT_** that is allowed to change over time but determined aheaded of time. (POPULATION)

Question 32

**_INPUT_** that is allowed to change over time but determined aheaded of time. (POPULATION)

Answer 32

Exogenous Variable

Question 33

Endogenous Variable

Answer 33

**_OUTCOME_** (determined by supply and demand)

Question 34

**_OUTCOME_** (determined by supply and demand)

Answer 34

Endogenous Variable

Question 35

Potential Output

Answer 35

Measurment of per capita GDP evolvement if prices are completely flexible and resources fully employed

Question 36

Measurment of per capita GDP evolvement if prices are completely flexible and resources fully employed

Answer 36

Potential Output

Question 37

Economic Profit

Answer 37

Total Revenue minus Total payments for INPUT

Question 38

Total Revenue minus Total payments for INPUT

Answer 38

Economic Profit

Question 39

Accounting Profit

Answer 39

Revenue minus Payment to labor

Question 40

Revenue minus Payment to labor

Answer 40

Accounting Profit

Question 41

output per person in equilibrium

Answer 41

y^*= (A-bar)(K^1/3)

Question 42

y^*=(A-bar)(K^1/3)

Answer 42

output per person in equilibrium

Question 43

(A-bar)

Answer 43

Productivity Parameter (Total Factor of Production/Residual)

Question 44

Productivity Parameter (Total Factor of Production/Residual)

Answer 44

(A-bar)

Question 45

Law of Diminishing Return

Answer 45

All inputs held constant and 1 input increases and tend to a large number, increasing of output diminishes

Question 46

All inputs held constant and 1 input increases and tend to a large number, increasing of output diminishes

Answer 46

Law of Diminishing Return

Question 47

Human Capital

Answer 47

Stock or skills that individuals accumulate to make them more productive

Question 48

Stock or skills that individuals accumulate to make them more productive

Answer 48

Human Capital

Question 49

Solow Growth Model

Answer 49

Turning exogenous variables into endogenous variables, where capital is accumulated over time

Question 50

Turning exogenous variables into endogenous variables, where capital is accumulated over time

Answer 50

Solow Growth Model

Question 51

Capital Accumulation

Answer 51

K_t+1 = K_t + I_t - (d-bar)K_t ## Footnote ***Inital Capital(t) + investment used for production(t) -depreciation***

Question 52

Kt+1 = Kt + It - (d-bar)Kt ## Footnote ***Inital Capital(t) + investment used for production(t) -depreciation***

Answer 52

Capital Accumulation

Question 53

Steady-State level of Capital

Answer 53

y^* = ((s-bar)(A-bar) / (d-bar))^3/2 (L-bar)

Question 54

y\* = ((s-bar)(A-bar) / (d-bar))^3/2 (L-bar)

Answer 54

Steady-State level of Capital

Question 55

Steady-State level of Production

Answer 55

y\* = (A-bar)^3/2(s-bar/d-bar)^1/2​ (L-bar)

Question 56

y\* = (A-bar)^3/2(s-bar/d-bar)^1/2 (L-bar)

Answer 56

Steady-State level of Production

Question 57

Investment Equation

Answer 57

(Share of Output for investment) - (weighting diff of real interest and MPK)(MPK)

Question 58

(Share of Output for investment) - (weighting diff of real interest and MPK)(MPK)

Answer 58

Investment Equation

Question 59

Nominal

Answer 59

Valued at Current Price

Question 60

Valued at Current Price

Answer 60

Nominal