symbols

Question 1

Nt

Answer 1

the economy average population in period t

i.e. the average number of residents

Question 2

to

Answer 2

base period

Question 3

P

Answer 3

price index.

Question 4

r

Answer 4

real interest rate,

r is the growth rate of the purchasingpower of amount A

Question 5

i

Answer 5

is a nominal interest rate

because it describes how thenominal amount A is going to evolve

Question 6

L

Answer 6

employment

Question 7

N^w

Answer 7

working age population

Question 8

𝛼

Answer 8

𝛼 reflects the relative importance of labour with respect to

capital in the production process

Question 9

At

Answer 9

At reflects the productivity of factors of production ➙

“Total factor productivity”

Question 10

Nt

Answer 10

denote the population size in t

Question 11

𝜆t ∈ ]0, 1]

Answer 11

denote the share of the employed in the total

population ➙ Lt = 𝜆t Nt since 𝜆t ≡ Lt/Nt

Question 12

yt

Answer 12

denotes per-capita GDP

☞ Considering At and 𝜆t as exogenous, we can write
yt = ft(kt)

Question 13

kt

Answer 13

denotes per-capita productive capital stock

Question 14

𝜆

Answer 14

Employed Population Share

Question 15

r

Answer 15

Average real interest rate on debt

Question 16

B

Answer 16

Real value of end-of-period debt

Question 17

CPI

Answer 17

CONSUMER PRICE INDEX