Applied macro economics
Question 1
Comment on the following statement: "The key feature of the production function is that the marginal impact of capital per worker k = K/L on Y/L decreases as K/L increases."
Question 2
IF the comment in question 1 is correct, the only hope for enjoying sustained increases in Y/L is through increases in the efficiency of labor E, which in turn means that the only hope for enjoying sustained increases in Y/L is through technological progress. Comment on this statement.
Question 3.
Comment on the following statement: "The exclusive source of long-term economic growth is additions to the stock of physical capital per worker."
Question 4
Regarding business fluctuations (cycles), comment on the following statement: "When GDP declines during a recession, growth in real consumption and investment spending both decline and unemployment rises moderately."S