In the Ramsey model, when both government spending and a tax on investment are introduced, and the saddle path passes above the initial steady-state equilibrium, what is the most likely outcome for consumption and capital over time?

In the Overlapping Generations (OLG) model, assuming a CRRA utility function where θ=1 and a Cobb-Douglas production function, what is the effect of decreasing the discount rate, similar to an increase in the savings rate?

In the Overlapping Generations (OLG) model, how is risk aversion linked to the impact that the rate of return has on the savings rate (i.e., ∂s/∂r)? Select all the correct statements below:

In the first half of the semester, we discussed the importance of technology shocks for long-run growth. What does the AD/AS model suggest about the impact of technology shocks on price (P) and output (Y) in the short run (SR) and long run (LR)?

In an endogenous growth model where technological progress is determined within the model (no longer simply growing exogenously at rate g), the growth rate depends on θ. Select all the correct statements below:

Why is the SRAS or Lucas supply curve y=b(p−E(p)) upward sloping in the Lucas imperfect information model?

In the IS-MP-PC model, assuming the Taylor principle holds, how does the central bank balance the trade-off between stabilizing inflation and output when faced with an adverse supply shock (e.g., an increase in oil prices)?

Why is the Aggregate Demand (AD) curve downward sloping?

Which of the following statements accurately describe the relationship between ​ (variance of relative prices) and ​ (variance of the aggregate price level) and their impact on aggregate output in the Lucas model? Select all that apply.

Identify three (3) specific tool traditions discussed in the course by name and explain their specific characteristics (including when and where they were first made). What do these changes help us to understand about cultural evolution?