In the Solow model, if f(k) = 6k0.5, s = 0.1, n = 0.1, and d = 0.2, what is the value of c at equilibrium?
A. 10
B. 11.2
C. 10.8
D. 10.4
Answer: C
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List four things considered to be shortcomings in the determination of GDP in relation to the use of GDP as a measure of welfare
What will be an ideal response?
Economic theory provides a basis for which variables are relevant and should be included in an econometric model. But econometrics provides tools to estimate ____ which tells us ____.
a. a model; the functional form that should be used b. causality; why it happens that way c. a parameter; how much or to what degree things change d. variables; the probability of a specific outcome
Which of the following is not a topic studied in Macroeconomics?
A. the unemployment rate B. the inflation rate C. the price of Dell computers D. gross domestic product
Suppose that you took out a $1000 loan in January and had to pay $75 in annual interest. During the year, inflation was 6 percent. Which of the following statements is CORRECT?
A) The nominal interest rate is 7.5 percent and the real interest rate is 1.5 percent. B) The nominal interest rate is 7.5 percent and the real interest rate is 13.5 percent. C) The real interest rate is 7.5 percent and the nominal interest rate is 1.5 percent. D) The real interest rate is 6 percent and the nominal interest rate is 7.5 percent.