Macro Ch. 6 Quizzes
There are N consumers, Q is the labor force, and N-Q is the number of consumers choosing home production.
In the DMP model
the firms surplus from a match is equal to a constant fraction of total surplus
In the DMP model
whether or not to enter the labor market by posting vacancies
In the DMP model firms decide
technological change
In the Solow growth model, long run growth in the standard of living is propelled by
(Q-U)/N
N= working age population, Q= labor force, U= #of unemployed. What is the employment/ population ratio measured as?
the timing of taxes collected by the government is neutral
Ricardian equivalence implies
their tax cuts to pay their future taxes.
Ricardian equivalence implies that consumers will save..
Capital
The Solow model emphasizes the role of which of the following factors of production
Limited Commitment
The negative impact of the loss of value of collateralized assets is due to a
people can borrow from the government
Which of the following is not a reason for the Ricardian equivalence theorem to fail to hold.
can explain the shift in the beveridge curve
a decrease in matching efficiency
covering the default risk
a default premium is the interest rate premium
a long run equilibrium
a steady state is
collateral
an asset that can be seized if the borrower defaults
reduce unemployment rate
in the DMP model, a decrease in unemployment insurance benefits would
consumption of durables
in the data which is the most volatile
increases output per worker and capital per worker.
in the steady state of Solow's exogenous growth model, an increase in the savings rate
increases output per worker and capital per worker.
in the steady state of Solow's exogenous growth model, an increase in total factor productivity
decrease the size of the labor force
in the two sided search model, an increase in productivity doesn't...
Thomas Malthus
the idea that an improvement in technology causes an increase in population but causes no increase in the average standard of living is attributed to
it is costly and time consuming to get firms and workers together to produce output.
the matching function captures the idea that
diminishing marginal product of labor
the matching function exhibits all of the following properties except
consumption smoothing
the tendency of consumers to seek a consumption path over time that is smoother than income
credit market imperfections and changes in market prices
the two primary explanations for the excess volatility of consumption are
the richest countries, but not the poorest countries.
there is evidence that income per worker is converging in
the constant returns to scale
we can express the per worker production function as a function of only per- worker capital thanks to
good borrowers are affected
when there is an asymmetric information problem in the credit market.
a decrease in the availability of information for firms on the skills of workers
which of the following best describes mismatch that can increase the unemployment rate?
Labor Market Tightness
# of firms divided by # of consumers looking for work
U/Q
If N is the working age population, Q is the labor force, and U is the number of unemployed, then the unemployment rate is measured as...
the declining marginal product of capital
In Solow's exogenous growth model, the principal obstacle to continuous growth in output per capita is due to
bargaining between the firm and the worker
in the DMP model wage is determined by
each consumer decides between searching for work or home production.
in the DMP model,
increases the unemployment rate
in the DMP model, a decrease in productivity
positively related to the rate of investment and negatively related to the rate of population growth.
recent evidence suggests that output per worker is