Directions: Please answer all question in essay from with complete paragraphs. Use graphs if appropriate to bolster your arguments. 1. Beginning from...

Directions: Please answer all question in essay from with complete paragraphs. Use graphs if appropriate to bolster your arguments.

1. Beginning from the steady state in the Solow Growth Model, explain how an increase in the savings rate will affect the levels of growth rates of capital and output per worker. Please show this graphically and label all points and curves!

2. How does population growth affect the steady state levels of capital and output per worker? Use graphs.

3. In the Solow growth model, list which variables are exogenous and which are endogenous. What does exogenous and endogenous mean.

4. What government policies can be used to promote productivity growth?

5. What are business cycles? Explain graphically and verbally

6. What is the difference between the short run and long run in macroeconomic analysis? Why do macroeconomists differentiate between the two time horizons?

7. What happens to aggregate output if unplanned inventory investment is either positive or negative?

8. What does the IS curve show? Why does it slope downward? Use graph. Show the curve

9. What causes the IS curve to Shift. Discuss all factors and explain