Exercise problem sets
ECONOMIC GROWTH
Spring 2010
Problem Set I Problem Set II Problem Set III Problem Set IV Problem Set V *) Problem Set VI Problem Set VII **)
*)
4/5 - 2010: In the first published edition of Problem Set V, by a mistake
Problem V.3 was named VI.3. It is now corrected.
**)
20/5 - 2010: Correction to
Problem VII.1, p. 1, line 7 from below: "whether under these conditions positive
per capita consumption can ..." should read "whether under these conditions
constant positive per capita consumption can ...".
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Solutions to some problems from I and II, incl. II.4.
25/2 - 2010. Catching-up with II.8:
f) because k_tilde goes down, but T goes up; g)
w is higher in the long run because k-tilde will be the same in
the long run while T will be higher; h) because the impact effect of the
shock on human wealth, h, is ambiguous in that even if the real wage goes
up, the interest rate (and thereby the discount rate used to calculate the PV of
the labor income stream) also goes up, thus leaving the sign of the change in PV
ambigiuous; i) c is higher in the long run because c-tilde will be
the same in the long run while T will be higher.