Midterm 2 Set 2

Front 1

What are the 3 components of the aggregate supply schedule?

Back 1

1. The production function
2. The mark-up
3. The Phillips Curve

Front 2

Draw the Keynesian and Classical parts of the aggregate supply schedule

Back 2

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Front 3

The Production Function

Back 3

Output (Y) is a function of employment (N) where a=Y/N is labor productivity

Front 4

Show how the 3 components of the aggregate supply schedule result in an upward sloping aggregate supply schedule

Back 4

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Front 5

If an economy exhibits constant returns to scale-Cobb Douglas technology-and experiences no technical progress, how much must capital grow to keep output per capita constant?

Back 5

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Front 6

Write down the link between saving and growth in capital. Write down the relationship in steady state.

Back 6

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Front 7

What happens to the steady state level of output when the level of savings exceeds the investment requirement? (prose)

Back 7

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Front 8

What happens to the steady state level of output when the level of savings exceeds the investment requirement? (graph)

Back 8

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Front 9

The mark-up

Back 9

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Front 10

The Phillips Curve

Back 10

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