Econ 2hh3 - Study guides, Class notes & Summaries

If consumers use their house as collateral for lending and the value of housing in general falls, then lending and aggregate consumption decrease. We assume that the representative consumer's preferences exhibit the properties that current and future consumption are both normal goods and that the consumer likes diversity in his or her consumption bundle. An increase in total factor productivity shifts the production function upwards and increases the marginal product of labour. A com...

The marginal rate of substitution of future leisure for future consumption must be equal to the future real wage. The per worker production function relates output per worker to capital per worker. In the Malthusian model, population growth depends on consumption per worker. The Malthusian model has the property that improvements in technology for producing goods leads to increased population growth. In the steady state of Solow's exogenous growth model, an increase in the population gr...

ECON 2HH3 - Final Exam Practice Test practice questions and answers solution 2021

ECON 2HH3 - Practice Test questions and aswers solutioon new updated docs 2021