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Economic Concepts and Terms Assignment | Homework For You

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February 25th, 2020

1. Understanding of economic concepts and terms (maximum half-page) :

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TRUE/FALSE/MAYBE and EXPLAIN. According to Solow-Swan, it is impossible for a country to maintain high growth rates in real GDP per capita (and per hour worked) with overall diminishing returns to capital. (b) Understanding and using economic theory and models:

2. Understanding and using economic theory and models (maximum one page) (4 MARKS) Use the appropriate AD-AS model diagram and explanation to depict the following:

(a) An exogenous shock where equilibrium price level and real GDP move higher. (1 MARK)

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(b) An exogenous shock where equilibrium price level and real GDP move in opposite directions. (1 MARK)

(c) a rise in price level and real GDP without any exogenous shock. (2 MARKS) Explain your answers briefly. Get Economics homework help today

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