Solutions Part A - Growth Rates & Time to Double (Rule of 70) Part B - Returns to Scale - Constant or Not? Part C - Solow Growth Model - Solving for Steady State Part D - Plugging in Numbers Part E - Using the Solow Model and Diagram (a) very similar to T/F problem 3 above - rules at the top of page 54 (of Jones Macro Econ Crisis Update Ed), and be able to apply them in the example on page 54-55 Given the production function Part 1, Growth Rate of Y. You can rewrite the production function in terms of growth rates – and the problem is asking for .Part 2, Time to DoubleTime to double? Use the rule of 70 So, by my maths, at 4% growth it takes about 17 to 18 years to double the size of this economy (for income to double). |

Teaching - Curtis Kephart > Econ 100B Intermediate MacroEconomics (Homework and exam examples) >