Exercise problem sets
ECONOMIC GROWTH
Spring 2011
Problem Set I Problem Set II Problem Set III*) Problem Set IV**) Problem Set V Problem Set VI Problem Set VII Problem Set VIII
Correction to Problem
Set I:
p. 3, e), line 2 should read: "stock, the same number of
workers, and the same number of man-hours per worker per year. ...."
p. 3, e), line 2-3: it is better to name the two countries
a and b, since the letter A has already been used to indicate the
technology level.
p. 3, e), line 3-4: "Adapt the formula (*) so that..." should
be interpreted as "Elaborate the formula (*) so that...".
New.
p. 5, b), line 1: "y/L" should read "y/T".
Further corrections to Problem
Set I:
p. 4, I.5, above eq. (2): "It is assumed that" should read
"It is assumed that there is full employment and that".
p. 6, e): "results in j) and k)" should read "results in c)
and d)".
Correction to Problem
Set II:
p. 1, line 5: "does the Solow model predict" should be "does
the Solow model with perfect competition predict".
New!
p. 2, line 12: delete "Gross saving is a constant proportion
of gross income."
Correction to Problem Set IV:
p. 3: to obtain consistency with the notation in Acemoglu, p.
361-362, and in Lecture Note 6, replace s by S.
(Corrections/help to Problem VI.1,
April 13, 2010).
Updated corrections and help
for Problem VI.1 (replaces the corrections as of April 13, 2011).
Clarification/correction to Homework 2:
Problem 1f): The hint should read: If you have shown
that the real interest rate is a constant and that the aggregate production
function is AK-style, then it is enough ...
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*) This is a corrected and complete version (3/3 2011 at 19:10).
**) This is the corrected version (24/3 2011 at 18:25).