in high tech industries for defense? Explain briefly. B) Demographic characteristics of the population also affect the natural rate, according to this model. Identify and explain briefly how each of these two scenarios might affect the natural rate, giving a short explanation. First, the population is characterized by having an age-group that is unusually large, such as the "war-baby" generation that was born shortly after WWII. How might the aging of this group --they are now in their mid-fifties--affect the overall natural rate of unemployment for the economy? The second situation is to consider a groupBlet=s call them womenBwho are more flexible about hours and types of jobs they will take. Suppose that over time the labor force participation of this group grows; how would the natural rate of the economy change? 5. Let's talk some more about economic growth. A) According to the "historical growth accounting" analysis, what have been the three most important factors determining growth of the economy, in the second half of the twentieth century? What would be the relative ranking of these three, in terms of their contribution to our growth? B) Which of those three factors is usually blamed for the "Productivity slowdown" of the 1990s? C) In terms of our growth accounting formula, with a weight for labor of 0.6 and for capital of 0.4. What happens to the economy's overall growth rate if the rate of growth of population falls from two percent to one percent? If technological change occurs at 0.75% per year, the target rate of growth of real GDP is 3 percent, and the population is growing at 2 percent, what must be the growth of the capital stock? D) Explain real simply what is meant by Aendogenous growth theory, perhaps illustrating your answer by comparing it to Solow's growth theory. The median on this exam was 61, the high was 92. Econ 301 Exam #2 Winter, 2003 Professor Twomey Please PRINT your name on the BACK of the last sheet. You will lose credit if your name appears anywhere else. Answer on these sheets, using the flip sides if necessary. Questions are equally weighted. Be sure to label the axes on the graphs. If any question is unclear, please ask for a clarification. Good luck!
in high tech industries for defense? Explain briefly. B) Demographic characteristics of the population also affect the natural rate, according to this model. Identify and explain briefly how each of these two scenarios might affect the natural rate, giving a short explanation. First, the population is characterized by having an age-group that is unusually large, such as the "war-baby" generation that was born shortly after WWII. How might the aging of this group --they are now in their mid-fifties--affect the overall natural rate of unemployment for the economy? The second situation is to consider a groupBlet=s call them womenBwho are more flexible about hours and types of jobs they will take. Suppose that over time the labor force participation of this group grows; how would the natural rate of the economy change? 5. Let's talk some more about economic growth. A) According to the "historical growth accounting" analysis, what have been the three most important factors determining growth of the economy, in the second half of the twentieth century? What would be the relative ranking of these three, in terms of their contribution to our growth? B) Which of those three factors is usually blamed for the "Productivity slowdown" of the 1990s? C) In terms of our growth accounting formula, with a weight for labor of 0.6 and for capital of 0.4. What happens to the economy's overall growth rate if the rate of growth of population falls from two percent to one percent? If technological change occurs at 0.75% per year, the target rate of growth of real GDP is 3 percent, and the population is growing at 2 percent, what must be the growth of the capital stock? D) Explain real simply what is meant by Aendogenous growth theory, perhaps illustrating your answer by comparing it to Solow's growth theory. The median on this exam was 61, the high was 92. Econ 301 Exam #2 Winter, 2003 Professor Twomey Please PRINT your name on the BACK of the last sheet. You will lose credit if your name appears anywhere else. Answer on these sheets, using the flip sides if necessary. Questions are equally weighted. Be sure to label the axes on the graphs. If any question is unclear, please ask for a clarification. Good luck!
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